TAIPEI, Taiwan — The weighted index on the Taiwan Stock Exchange rose 25.26 points, or 0.24 percent, to 10,349.72 Wednesday, reaching a 27-year closing high, despite a pullback in most global equity markets, dealers said.
The main index opened down 13.94 points on a mild technical correction from the previous session as selling emerged, focusing on large-cap stocks in the electronics sector such as contract chip maker Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) and iPhone assembler Hon Hai Precision Industry Co. (鴻海), the two companies with the highest market capitalization in Taiwan.
However, bargain hunters became active in the mid-morning session, setting their sights on old-economy and medium- and small-cap stocks, which helped the market move into positive territory and close at a 27-year high after moving between 10,274.75 and 10,379.82 on turnover of NT$108.634 billion (US$3.57 billion).
The electronics sub-index closed 0.07 percent higher, while the financial sector ended 0.09 percent lower.
Shares in TSMC and Hon Hai ended their winning streaks of the two previous sessions, with TSMC losing 0.46 percent to end at NT$215.50 and Hon Hai dropping 1.31 percent to end at NT$113.00.
Among the strongest performers in the electronics sector, passive component manufacturer Yageo Corp. (國巨) gained 9.85 percent to end at NT$111.50, while its affiliate, Chilisin Electronics Corp. (奇力新), rose 2.03 percent to end at NT$85.50.
Other optoelectronic stocks, including smartphone camera lens supplier Genius Electronic Optical Co. (玉晶光), computer component maker Taiwan Union Technology Corp. (台燿) and Asia Optical Co. (亞光) also closed higher.
Wei Yung-hsiang (魏永祥), a manager at Taishin China Equity Fund (台新中國通基金), said that selling pressure is expected to grow following the winning streaks of the past several sessions, as foreign investors’ buying momentum drops and foreign capital inflow will be major factors affecting the market in the near future.
According to the Taiwan Stock Exchange, foreign institutional investors bought a net NT$2.459 billion-worth of shares on the main board on Wednesday.