TAIPEI (Taiwan News) — Taiwan’s stock market on Thursday faced profit-taking pressure, as gains in select electronics and financial shares offset weakness in heavyweight technology stocks on sector rotation.
The Taiwan Capitalization Weighted Stock Index, or TAIEX, edged up 1.42 points to close at a record 35,414.49. Turnover reached NT$1.14 trillion (US$43.9 billion), also a historic high, according to CNA.
In a shortened four-day trading week ahead of the 228 Memorial Day holiday, the TAIEX advanced in every session, setting new closing highs throughout the week. Total market capitalization of listed companies climbed to a record NT$115.4 trillion, up about NT$5.87 trillion from a week earlier, according to CNA.
During Thursday’s session, Aspeed Technology briefly became the first to top NT$10,000. The integrated circuit design company hit an intraday high of NT$10,275 before retreating to close at NT$9,730.
TSMC opened lower and came under selling pressure late in the session, ending down 0.99% at NT$1,995. Foxconn attracted late buying of more than 14,000 lots, or 14 million shares, and closed 1.42% lower at NT$243, according to CTEE.
Delta Electronics Inc. fell 9.35% to NT$1,430. MediaTek rose 4.01% to NT$1,945, trading higher throughout the session.
After the close, 37 stocks were priced above NT$1,000. Seventeen reached record highs during intraday trading.
Funds rotated into companies within TSMC’s supply chain. Chroma Ate, C Sun, Machvision, Allring Tech, Yankey Engineering, and Mss all hit their daily limit-ups.
Glass substrate-related firms also gained, as the materials are considered critical for next-generation advanced packaging of AI chips. Unimicron Technology rose more than 5% to NT$481.5, Mirle Automation gained 4.92% to NT$74.7, and E and R Engineering advanced 3.44% to NT$96.1.
Specialty chemical stocks tied to AI and advanced semiconductor packaging also drew buying. Ingentec and Evermore Chemical Industry both closed at their daily limit-ups at NT$465 and NT$18.85, respectively.
Tsai Ming-han (蔡明翰), associate vice president of consulting at Cathay Futures Consultant, said the selling largely reflected overextended stock prices and pre-holiday profit-taking, rather than a shift in the overall market trend. He added that the market’s upward momentum remains intact, underpinned by steady growth in the AI and semiconductor sectors.
Wei Yung-hsiang (魏永祥), fund manager of the Taishin Growth Dominance Active ETF, said uncertainty over potential US tariffs could create short-term volatility. He also highlighted that margin financing balances, or funds borrowed by investors to purchase shares, have exceeded NT$360 billion, which could weigh on sentiment and increase the likelihood of profit-taking, according to CTEE.
Sun Chia-ming (孫嘉明), an analyst at Ibf Securities, noted that the market has climbed well above its recent average, marking the widest gap since late 2022 and raising the possibility of a short-term pause or pullback. However, he said the broader uptrend remains intact, and a correction could be viewed as a buying opportunity.
Wei recommended focusing on industries likely to benefit from the growing demand for AI technology and infrastructure. These include companies involved in chip manufacturing, electronics design, semiconductor materials, and advanced production equipment, as well as sectors showing early-year growth momentum.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
