TAIPEI (Taiwan News) — Taiwan's stock market fell Wednesday as high-priced heavyweight stocks declined.
The Taiwan Stock Exchange Capitalization Weighted Stock Index closed down 243.94 points at 23407.33. Turnover totaled NT$359.86 billion (US$10.95 billion), per CNA.
TSMC ended the day down NT$25 (76 cents) at NT$1,105. Its market capitalization fell to NT$2.87 trillion, contributing about 202 points to the TAIEX's decline.
Foxconn and MediaTek each dropped more than 1%. Ase Technology Holding fell by 2%.
Other high-priced stocks — including Aspeed Technology, eMemory Technology, and Alchip Technologies — also closed lower. The electronics sector index decreased by 1.39%.
High-priced stocks generally refer to shares with significantly higher prices compared to most others in the market. These stocks typically belong to companies with larger market capitalizations, solid financial health, and are well-trusted by investors, according to EBC.
Most traditional industry stocks closed lower. The plastics sector index fell 2.33%, driven by further declines in the shares of Formosa Plastics, Nan Ya Plastics, and Formosa Chemicals & Fibre. The textile and construction sector indices showed relative strength with higher closes.
Shin Kong Investment Trust Chair Liu Kun-hsi said the market pullback followed a substantial rise. Liu predicted the outlook for Taiwan's stock market will depend on the US stock market and TSMC performances.
A pullback refers to a decline in a stock's price after a period of continuous gains, typically due to a decrease in buying pressure. In a bull market, pullbacks are often viewed as buying opportunities and are generally followed by renewed upward momentum, per Jyes.