TAIEX yesterday closed above 16,700 points, led by Taiwan Semiconductor Manufacturing Co (TSMC,), the world’s largest contract chip maker.

The benchmark index closed up 393.91 points, or 2.40%, at the day’s high of 16,781.19. The turnover was NT $ 283.979 billion (US $ 10.13 billion).

The market was supported by strong buying of tech stocks, after TSMC posted higher-than-expected profit in the third quarter and improved its outlook at an investor conference on Thursday.

All major stock classes except textiles gained ground, with mechanical and electronics stocks posting the largest gains.

Semiconductor stocks accounted for nearly 40% of total revenue, while shipping industry stocks accounted for 14%.

TSMC, the most heavily weighted share on TAIEX, rose 4.17% to close at NT $ 600.00, with 53 million shares changing hands.

United Microelectronics Corp (UMC,), the second largest Taiwanese contract chip maker, closed 4.23% higher at NT $ 59.10.

Among Apple Inc’s suppliers, Largan Precision Co (大 立 光), a maker of smartphone camera lenses, gained 2.03% to close at NT $ 2,010.00.

Shares of iPhone assembler Hon Hai Precision Industry Co (鴻海 精密), just behind TSMC in terms of market cap, rose 2.82% to close at NT $ 109.50.

However, shares in the shipping industry came under selling pressure, with shares of the three largest companies all closing lower.

Evergreen Marine Corp fell 1.47% to close at NT $ 93.90, Yang Ming Marine Transport Corp (運 海運) edged down 0.11% to close at NT $ 92.30 and Wan Hai Lines Ltd (萬 海 航運) closed 2.13% lower at NT $ 161.00.

Sustaining the recovery depends on the performance of technology stocks in the United States over the next few weeks, said Tsai Ming-han (蔡明翰) analyst at Cathay Futures Consultant Co (國泰 證 期 顧問).

Foreign institutional investors yesterday bought NT $ 27.90 billion in net shares, the Taiwan Stock Exchange reported.