The TAIEX recouped earlier losses and closed higher yesterday as Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, staged a technical rebound amid optimism over its fundamentals.
Turnover remained thin as many investors stayed on the sidelines, with dealers attributing the growing wariness to hints from the US Federal Reserve that it would not only implement a series of rate increases, but would also reduce its balance sheet to further tighten money supply.
The TAIEX ended up 69.62 points, or 0.38 percent, higher at 18,239.38.
Turnover was NT$270.988 billion (US$9.79 billion), with foreign institutional investors selling a net NT$5.28
The TAIEX yesterday rose above 17,000 points as investors took cues from the record highs reached by major US indices on Friday.
The bellwether electronics sector dominated, leading the broader market to climb out of losses recorded over the previous couple of sessions.
The gains were capped ahead of the 120-day moving average of about 17,100 points by the end of the session, an analyst said.
“Despite the gains posted by the electronics sector and the TAIEX, many large-cap tech stocks in particular contract chipmaker Taiwan Semiconductor Manufacturing Co [TSMC, 台積電] remained in consolidation so it was no surprise that the