TAIPEI (Taiwan News) — Taiwan's stock market recovered to above its 10-day moving average of approximately 23,277 points Friday (Oct. 25), driven by tech-weighted stocks.
The Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX) closed 155.93 points higher, halting a three-day losing streak. Trading volume exceeded NT$300 billion (US$9.4 billion), per CNA.
Taiwan's three major weighted stocks maintained above the flat line throughout the entire trading session, supporting the overall stock market. Taiwan Semiconductor Manufacturing Company’s (TSMC) stock price increased by NT$5, closing at NT$1,065.
Foxconn closed its highest point of the day at NT$216. MediaTek's stock price increased by NT$45, closing at NT$1,315.
Weighted stocks, which heavily influence the market index, can be used to gauge the overall market trend. They are also the most frequently discussed and analyzed stocks, according to Stockfeel.
Tesla's strong earnings report and positive outlook exceeded market expectations. Its stock price increased by over 20% on Thursday (Oct. 24).
This positive sentiment also lifted the stock prices of Taiwanese companies that supply Tesla. TungThih, Excellence Opto, and Waffer Technology saw their stock prices hit the daily limit Friday.
The announcement by Tesla CEO Elon Musk of a full-scale push into AI for self-driving cars generated positive market sentiment. Wistron, which indirectly supplies AI server motherboards, closed at NT$115, up more than 5%.
There are two major uncertainties in the current stock market, Tsai Ming-han (蔡明翰), a manager at Cathay Futures Consultant, pointed out. The US presidential election and the upcoming earnings reports of tech giants like Apple, Microsoft, Google, Meta, and Amazon could both impact the market.
With the polls for the election too close to call, investors are hesitant to make significant moves. The release of these tech giants' earnings reports next week could further increase market volatility in the short term.
