TAIPEI (Taiwan News) — Taiwan’s stock market rose Tuesday (Nov. 19), buoyed by strong performances from US tech companies, with Taiwan Semiconductor Manufacturing Co. (TSMC) breaking above its five-day moving average.
The Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX) gained 302.26 to close at 22,848.8, surpassing its five-day moving average of 22,742. Turnover totaled NT$355 billion (US$11 billion), per CNA.
Taiwan’s three major container shipping companies also saw a strong rally. Evergreen Marine’s stock price rose more than 4% during intraday trading, hitting a new high since its relisting in September 2022 following a 60% capital reduction, according to CNA.
Yang Ming Marine Transport's stock price increased by over 3%, closing at NT$74.4 with over 70,000 shares traded. Wan Hai Lines also experienced a significant uptick, with its stock price climbing over 2%.
The Shanghai Containerized Freight Index (SCFI), a key benchmark for global container shipping rates, has recently ended its upward trend. Despite this, the three major Taiwanese shipping companies have released impressive financial reports.
The shipping industry is poised to benefit from several positive factors. These include the anticipated pre-Lunar New Year restocking wave, potential price increases on European routes, ongoing uncertainties surrounding Trump-era tariffs, and the risk of renewed labor strikes on the US East Coast.
Market rumors suggest that major shipping companies have notified their clients of impending price hikes on European routes, effective Dec. 1. These increases are reportedly due to ongoing issues with supply and demand imbalances and challenges in managing vessel schedules.
While the electronics sector remains strong, other sectors are rotating during the market's consolidation phase, Cathay Futures consultant Tsai Ming-han (蔡明翰) pointed out. The market's direction will become clearer after Nvidia's earnings report.