TAIPEI (Taiwan News) — Taiwan’s stock market maintained high-level fluctuations Wednesday, holding above all moving averages.
The Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX) closed up 99.89 points at 23220.13. Turnover totaled NT$305.7 billion (US$9.35 billion), lower than the five-day average as foreign investors are on holiday, per CNA.
Heavyweights have seen reduced activity in recent trading. Funds have flowed into small and medium-sized stocks, particularly in sectors like battery backup units and robotics.
A battery backup unit (BBU) is installed in servers to prevent data loss during power outages. The escalating power requirements of AI workloads drive up the need for uninterruptible power supply systems and BBUs, presenting a promising outlook for BBU markets.
The three major heavyweight stocks saw slight gains. TSMC rose NT$5 (US$0.15) to NT$1,085 (US$33), Foxconn gained NT$1 to reach NT$186.5, and MediaTek climbed NT$5 to finish at NT$1,410.
With foreign investors entering the Christmas holiday, the market is now led by domestic capital. The year-end window dressing continues to gain momentum, with active trading in small and medium-sized stocks.
Window dressing refers to trading activity near the end of a quarter or fiscal year aimed at improving the appearance of a portfolio for clients or shareholders. This can involve selling underperforming assets to present a portfolio that primarily reflects gains, while financial institutions have been criticized for temporarily moving debt off their balance sheets to appear less risky, according to Nasdaq.
BBU concept stocks Aes-KY and Dynapack International Technology closed up at the daily limit. Celxpert Energy and Sysgration also posted strong gains.
Benefiting from the current focus on robotics, optical manufacturers have seen increased investor interest. Canon and Asia Optical hit their daily limit, closing at NT$70.1 and NT$185, respectively.
Cathay Securities Investment Consulting Manager Tsai Ming-han (蔡明翰) highlighted the upcoming US Consumer Electronics Show in January as a key event to watch for further market insights. CES showcases the latest innovations in consumer electronics, ranging from cutting-edge gadgets and smart devices to next-generation cars and robotics, according to CNET.
