Taiwan stocks end with a strong technical rebound
Taipei, March 1 (CNA) Taiwan stocks made a significant technical comeback in the first trading session of the week on Tuesday after heavy losses a week earlier triggered by Russia’s invasion of Ukraine.
Bargain hunters could be found in all areas, with the electronics sector – which had been hit hard last week – taking center stage.
Meanwhile, buying also shifted to commodity stocks on rising commodity prices, as well as shipping stocks on hopes of high cash dividends, dealers said.
The Taiex, the weighted index of the Taiwan Stock Exchange (TWSE), ended up 246.07 points, or 1.39%, at 17,898.25, after trading between 17,657.50 and 17,944, 50. Revenue totaled NT$357.92 billion (US$12.78 billion).
The market opened 5.32 points and quickly gained momentum as investors shrugged off the impact of the Ukraine crisis, picking up bargains to take advantage of battered large-cap stocks in the oil and gas sectors. electronic and non-technological.
Despite the strong technical bounce, the Taiex failed to reach the 18,000 mark during the session as high technical hurdles remained ahead of that level.
Sale by foreign investors
“After aggressive selling by foreign institutional investors last week, it is no surprise that they have rebuilt their positions at the start of a new week, leaving the Russian-Ukrainian war behind them, at least for now” , said the Mega International Investment Services Corp analyst. said Alex Huang.
“Recent losses in global markets are the result of uncertainty surrounding the direction of the standoff between Russia and Ukraine. The start of the war has removed this uncertainty and the conflict appears to be confined to the region without any direct intervention from third parties,” Huang said.
Overseas institutional investors sold NT$166.50 billion worth of shares on the main board last week, with a focus on big tech stocks. On Tuesday, foreign institutional investors bought NT$6.33 billion worth of shares, according to the TWSE.
“Today, foreign institutional investors began to rebuild their positions, and the electronics sector was a priority throughout the session. High-priced semiconductor stocks were highlighted,” he said. Huang said.
The electronics sector closed up 1.09% with the semiconductor sub-index up 0.84%.
Among high-priced semiconductor stocks, application-specific integrated circuit (ASIC) designer Alchip Technologies Ltd closed up 6.05% at NT$1,140.00, ASIC designer Alchip Technologies Ltd. power management Silergy Corp. closed up 5.91% to close at NT$3,855.00 and smartphone chipmaker MediaTek Inc. gained 1.38% to close at NT$1,100.00.
Additionally, United Microelectronics Corp., the second-largest contract chipmaker in Taiwan, rose 3.84% to close at NT$54.10, while Taiwan Semiconductor Manufacturing Co. (TSMC), the largest contract chipmaker in the world, closed unchanged at NT$604.00 after its release. a maximum of NT$610.00.
“Sentiment towards TSMC, the most weighted stock in the local market, remained cautious amid fears that any external negative leads that emerge could drag this liquid stock down. But that had nothing to do with its fundamentals,” Huang said.
Overnight, TSMC’s US certificates of deposit fell for the eighth consecutive session, ending down 14% in US markets.
Also in the electronics sector, iPhone assembler Hon Hai Precision Industry Co. gained 1.46% to close at NT$104.50, and power management solutions provider Delta Electronics Inc. rose 4.06% to close at NT$256.50.
Stocks in other sectors
“Commodity stocks benefited from their relatively low valuations after the recent consolidation,” Huang said. “Rising commodity prices also prompted investors to buy.”
The steel sector rose 3.87% with China Steel Corp., Taiwan’s largest steelmaker, up 5.42% to close at NT$37.95, Yieh Hsing Enterprise Co. up 4.66% to close at NT$20.20 and Chung Hung Steel Corp. up 3.83%. to end at NT$42.05.
Riding the waves of rising crude prices, Formosa Plastics Corp. gained 2.86% to close at NT$108.00, Formosa Chemicals and Fiber Corp. rose 2.66% to close at NT$81.10, Nan Ya Plastics Corp. Formosa Petrochemical Corp. added 2.25% to close at NT$100.00.
In the transportation sector, which rose 3.08%, Evergreen Marine Corp., Taiwan’s largest containerized cargo shipper, rose 4.88% to close at NT$150.50, while rivals Yang Ming Marine Transport Corp. and Wan Hai Lines Ltd gained 4.33% and 3.21%. , respectively, to end at NT$120.50 and NT$193.00.
“I expect the buying of these shipping stocks to continue until they release their cash dividend policies,” Huang said.