Stock-related technologies contribute to TAIEX reaching a new peak level
Taiwanese Shares Reach Record High Amid Optimism and Strong IC Sector Performance
The Taiwan Capitalization Weighted Stock Index (TAIEX) reached a record high closing of 24,482.52 yesterday, marking a significant milestone for the Taiwanese market [1][2][3]. This increase was mainly driven by stronger expectations of U.S. interest rate cuts, improved market liquidity, and easing trade tensions benefiting Taiwan’s major tech exporters.
The surge was particularly evident in the integrated circuit (IC) sector, with companies like Taiwan Semiconductor Manufacturing Co (TSMC) and MediaTek showing notable gains. TSMC remained unchanged at NT$1,180, while MediaTek bucked the trend to close 1.45 percent higher at NT$1,410 [1]. The robust performance of these IC designers boosted their market caps, with TSMC's market cap surpassing NT$30 trillion [1].
However, tech stocks outside the IC industry experienced mixed results. Some companies, particularly in the electronics and industrial automation sectors, faced significant declines. Aurotek dropped over 9%, while Delta Electronics, Advantech, Nexcom, and Hiwin Technologies also ended lower [2]. This indicates that IC designers outperformed tech stocks outside their industry, which faced downward pressure amid broader market profit-taking and sector-specific challenges [2].
The total turnover for the day was NT$443.503 billion (US$14.76 billion), with foreign institutional investors buying a net NT$4.48 billion of shares on the main board [1]. Local investment trust firms also registered a net purchase of NT$1.87 billion [1].
The market initially lost ground in early trading due to fears over a potential tariff on semiconductors by the United States. These fears were based on reports over the weekend that President Donald Trump threatened a levy as high as 300 percent on semiconductors. However, these fears seemed to subside as the day progressed, with Taiwanese shares closing at a new high [1][2].
Notable gains were also seen in other sectors. Hon Hai Precision Industry Co rose 1.45 percent to close at NT$210, and Wus Printed Circuit Co soared 10 percent, the maximum daily increase, to end at NT$102 [1]. HTC Corp also jumped 10 percent for the second consecutive session to end at NT$51.6 [1]. Asia Vital Components Co rose 7.01 percent to close at NT$1,145 [1].
Moore Securities Investment Consulting Co analyst Adam Lin stated that the initial fears were the main reason for the market's initial downturn [1]. However, as these fears seemed to subside, the market recovered, propelled by optimism on monetary policy and the robust IC sector performance [1].
In conclusion, TAIEX’s record rise was largely propelled by optimism on monetary policy and robust IC sector performance, while tech stocks beyond IC designers had a less favorable showing [1][2][3].
[1] https://www.focus-taiwan.tw/news/aipl/202107200037.aspx [2] https://www.focus-taiwan.tw/news/aipl/202107200041.aspx [3] https://www.focus-taiwan.tw/news/aipl/202107200040.aspx
Read also:
- Musk threatens Apple with litigation amidst increasing conflict surrounding Altman's OpenAI endeavor
- Innovative Garments and Accessories Producing Energy: Exploring Unconventional Sources for Renewable Power
- Latest Automotive Update, August 13: Introducing Ola Electric's latest scooters, MG Windsor EV sales hitting new highs, Mahindra BE 6 teaser unveiled, and more...
- Digital Commerce Giant Clips Unveils Its Latest Offering, Clip Ultra, Fortifying Its Dominance in Mexico's Market
