Taipei, June 21 (CNA) Taiwan stocks posted a strong technical rebound on Tuesday, jumping more than 360 points as investors rushed to take advantage of a recent slump and pick up bargains, with said the dealers.

The buying focused on large-cap tech stocks, which had been battered by fears of a hawkish U.S. Federal Reserve, dealers said. Financial and old-economy heavyweights also rode the waves of the rebound to provide further support to the wider market, with the benchmark crossing the 15,700 mark at the end of the session. , the dealers added.

The Taiex, the weighted index of the Taiwan Stock Exchange (TWSE), ended up 361.06 points, or 2.35%, at the high of the day at 15,728.64, after hitting a low of 15,428.33. Revenue totaled NT$238.998 billion (US$8.04 billion).

Bullish US Stock Futures

The market opened 0.39% after falling 1.75% on Monday, and buying accelerated amid expectations of a higher open in the spot market later in the day following of a more than 1.3% rise in Dow Jones Industrial Average futures, dealers said.

The flagship electronics sector, which anchored the Taiex rebound on Tuesday, rose 2.22% to close the day’s high at 722.59, while the semis sub-index -drivers also gained 1.84% to end the day’s high at 350.06.

“Looking at the current performance of Dow Jones futures, I think a lot of investors here were just betting on a rebound in US markets tonight,” said Adam Lin, analyst at More Rich Securities Investment Consulting. “There was optimism that the shock of the Fed’s latest rate hike had been priced in after global equity prices fell.”

The Fed raised its key interest rates by 75 basis points last week to combat rising inflation in the United States, which hit a four-decade high of 8.6% in the growth of l consumer price index in May.

Additionally, the Fed has said an additional 50 or 75 basis point hike in July is possible.

“The recent sell-off on the local main board appears to have breached the mark, prompting investors to pick up bargains soon after the market opened,” Lin said, referring to the decline of around 1,300 points (7, 82%) of Taiex in the previous period. eight trading sessions amid concerns over an aggressive Fed.

June 17: Taiex Hits 13-Month Intraday Low and Falls 1.25%

Lin said the electronics sector attracted significant interest throughout the session, with large-cap semiconductor stocks leading the way.

Lin added that these stocks have been the main victims of rising interest rates, losing their luster due to unattractive dividend yields compared to rising bond yields.

Tech stocks

Contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), the most weighted stock in the local market, rose 1.41% to close at a daily high of NT$505.00, while United Microelectronics Corp., a small contract chipmaker, rose 2.60% to end the day’s high at NT$49.30.

Additionally, smartphone IC designer MediaTek Inc. rose 3.33% to close the day’s high at NT$868.00, while IC packaging and testing service provider ASE Technology Holding Co. added 3.33% to close at NT$99.40, despite a high of NT$99.50.

Also in the electronics sector, iPhone assembler Hon Hai Precision Industry Co. rose 2.75% to close at NT$112.00, and its metal case subsidiary Foxconn Technology Co. gained 3 .21% to end at NT$54.60. Power management solutions provider Delta Electronics Inc. climbed 5.68% to close at NT$232.50.

Smartphone brand HTC Corp. jumped 10%, the maximum daily increase to end at NT$46.30 after Cher Wang (王雪紅), the company’s chairman, was appointed independent non-executive director by China-based IT company Lenovo Group ltd.

Dealers said Lenovo’s decision to have Wang on board had sparked speculation that the Chinese company would work with HTC in the emerging “metaverse” market, a reference to the fashionable moniker for immersive internet technologies accessible through the virtual reality and related devices.

“With the end of the second quarter coming up, some mutual funds are also dressing their books for the quarter by increasing their holdings to drive up stock prices,” Lin said. “In addition to tech stocks, financials and old-economy stocks have become targets.”

Exterior technology

The financial sector rose 3.40% on hopes that widening interest spreads will boost bank results. Fubon Financial Holding Co. rose 4.98% to close at NT$63.20, Cathay Financial Holding Co. gained 4.63% to close at NT$54.20, Taiwan Cooperative Financial Holding Co. rose by 3.83% to close at NT$27.10, and CTBC Financial Holding Co. added 3.73% to close at NT$26.45.

In the old economy sector, Formosa Petrochemical Corp. gained 3.33% to close at NT$93.90, and Nan Ya Plastics Corp. rose 1.95% to close at NT$83.70.

Elsewhere in the old economy sector, EVA Airways climbed 10% to close at NT$31.55, and rival China Airlines gained 7.87% to end at NT$24.00, hoping that the government will soon ease border control to boost the tourism industry.

“Despite today’s surge in the Taiex, it remains to be seen whether the main board will soon challenge the high technical hurdles around 16,000 points,” Lin said. “Taiex’s strength will depend on how US markets rebound down the road.”

According to the TWSE, foreign institutional investors bought NT$18.17 billion worth of shares on the main board on Tuesday.