TAIPEI (Taiwan News) — Taiwan’s stock market fell Wednesday (Nov. 27), weighed down by large-cap stocks as the US' Philadelphia Semiconductor Index declined and concerns grew over potential US tariff hikes.
The Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX) closed 1.52% lower at 22,334.78 points. Turnover totaled NT$371.7 billion (US$11.4 billion), per CNA.
Major weighted stocks Taiwan Semiconductor Manufacturing Co., Foxconn, MediaTek and Quanta Computer dragged the index below its quarterly and semi-annual moving averages. Weighted stocks, heavy influencers of the market index, can be used to gauge the overall market trend and are also the most frequently discussed and analyzed stocks.
TSMC closed at NT$10 (31 cents) down at NT$1,000. Foxconn broke below its quarterly moving average to close at NT$196.5, while MediaTek dropped NT$30 to close at NT$1,250.
Trump has proposed a 25% tariff on imports from Mexico and Canada on taking office next year. Foxconn, Wistron, and Wiwynn — companies with manufacturing facilities in Mexico — saw underperforming shares.
Wistron and Wiwynn fell by over 6%. The downturn was mirrored in the AI server concept sector, with Quanta Computer, Inventec, and Giga-byte Technology witnessing decreases of 3.54%, 3.84%, and 4.4%, respectively.
The Israel-Hezbollah ceasefire deal led to a significant decline in shares of the three major container shipping companies. Evergreen Marine declined nearly 7%, while Wan Hai Lines and Yang Ming Marine Transport fell almost 6%.
The ceasefire agreement will go into effect on Wednesday, ending 13 months of fighting between Israel and Hezbollah in Lebanon, the BBC said. The shipping industry's golden age may be over as reduced Middle East tensions allow for shorter shipping routes and lower freight rates.
Analysts cited the weak performance of technology stocks such as Nvidia, and Trump's policies a major factor in the market's downturn. This shift in sentiment led to increased interest in smaller-cap stocks.
Investors are advised by analysts to monitor the PHLX Semiconductor Sector and Nvidia-related tech stocks to gauge market sentiment.