TAIPEI (Taiwan News) — Taiwan’s stock market on Friday extended its pullback for a second consecutive session, pressured by profit-taking ahead of the Lunar New Year holiday and US technology earnings developments.
The Taiwan Capitalization Weighted Stock Index, or TAIEX, fell 472.52 points to close at 32,063.75. Turnover totaled NT$907 billion (US$28.7 billion), according to CNA and CTEE.
Despite Friday’s decline, the TAIEX posted a sixth straight weekly gain of 102.24 points. The index ended January up 3,100.15 points.
TSMC closed down 1.66% at NT$1,775 as trading volume picked up late in the session. The chipmaker’s market capitalization slipped below NT$47 trillion to NT$46.03 trillion, weighing on the index by about 240 points.
Foxconn fell 1.56% to NT$220.5. MediaTek declined 1.12% to NT$1,760, and Delta Electronics dropped 2.79% to NT$1,220.
In contrast, the memory sector outperformed the broader market. Nanya Technology, Elite Semiconductor Microelectronics Technology, Albatron Technology, and CoAsia Electronics all hit their daily limit-ups.
CoAsia benefited from its role as a local distributor for Samsung. The stock has risen for five consecutive sessions, gaining a cumulative 57%.
PSMC, Macronix International, Phison Electronics, Apacer Technology, Adata Technology, Transcend Information, and Team Group also posted gains. Memory-related stocks have seen strong, multi-month gains, driven in part by higher prices resulting from the limited supply of certain chips, according to CMoney.
Ajinomoto Build-up film substrate makers also delivered steady performances. Unimicron Technology and Kinsus Interconnect Technology reached their daily limit-ups.
Nan Ya Printed Circuit Board rose 3.88%. ABF is a heat-curing epoxy film developed by Japan’s Ajinomoto that acts as an insulating layer in semiconductor packaging, allowing manufacturers to stack multiple circuit layers for advanced chips, according to Pocket Securities.
Analyst Wang Chao-li (王兆立) said Microsoft’s recent drop weighed on market sentiment, affecting US technology stocks and Taiwan’s artificial intelligence-related shares. The stock fell 9.99%, its largest single-day decline since 2020, despite the company’s second-quarter revenue exceeding analyst expectations, according to CNBC.
Institutional investors said the recent pullback mainly reflects profit-taking after the index reached record highs. Analysts advised caution against chasing prices in the short term, while selectively accumulating stocks with longer-term growth potential.
Ahead of the nine-day Lunar New Year holiday starting Feb. 14, they suggested watching declines in shares tied to advanced chipmaking, power and energy, aerospace and defense, and biotechnology.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
