TAIPEI (Taiwan News) — Taiwan’s stock market closed lower Friday after a volatile session, while steel and construction sectors gained momentum.
The Taiwan Capitalization Weighted Stock Index, or TAIEX, fell 145.8 points to close at 33,543.88. The index fluctuated by more than 600 points during the session, according to CNA and CTEE.
Turnover reached NT$966 billion (US$30 billion). For the week, the TAIEX recorded a gain of 143.56 points.
TSMC closed at NT$1,840, down 0.54%. MediaTek rose 1.19% to NT$1,700, Delta Electronics added 1.37% to NT$1,475, and Foxconn declined 0.98% to NT$203.
Foxconn Chair Young Liu (劉揚偉) outlined a positive outlook earlier this week, citing the company’s leading position in contract manufacturing for artificial intelligence servers. However, the company's share price marked a fourth straight session of decline, facing pressure near the NT$200 mark, according to Yahoo stocks.
Analyst Chen Wei-liang (陳威良) said limited market liquidity has prompted capital to shift toward companies with stronger growth momentum. While he sees Foxconn’s share price potentially reaching NT$300-400 in the future, he said buying near its annual moving average of about NT$196 may offer a more cautious entry point, according to Business Today.
Funds rotated into smaller electronic sub-sectors, including silicon photonics, probe cards, semiconductor equipment and inspection tied to TSMC, and battery backup unit modules.
In the silicon photonics sector, Fiber Optic Communications closed at its daily limit-up, while Pcl Technologies rose 4.43%. LuxNet, Ezconn, and Apogee Optocom also advanced, reflecting market focus on high-speed transmission and AI networking applications, according to CTEE.
Memory stocks saw wide fluctuations, with some shares experiencing profit-taking after earlier gains. Nanya Technology and Winbond Electronics both closed at their daily limit-downs.
Macronix International gained 1.91%. PSMC rose 0.67% and recorded the highest trading volume on the market.
Spillover effects from tight memory supply also lifted optical disc-related stocks. Ritek, Cmc Magnetics, and U-Tech Media each closed at their daily limit-ups.
Steel shares advanced after China Steel announced price increases for April and the second quarter. The company raised steel prices by NT$1,000 to NT$1,200 per ton, above market expectations, according to Ettoday Finance.
China Steel rose 3.46% to NT$19.45. Yieh Phui, Chung Hung Steel, Chien Hsing Steel, Hsin Steel, Hai Guang, and Chiu Yang all reached daily limit-ups.
Construction shares also moved higher after the Central Bank relaxed some housing loan restrictions. I-Hwa Industrial, Better Life Group, and Taiwan Steel Group Development hit daily limits, while Hua Yu Lien Development, Hainqui Construction Development, Kinddom Development, and Fu Hua Innovation gained more than 4%.
The Central Bank raised the mortgage loan cap for second homes from 50% to 60% and revised certain real estate lending rules. The changes took effect Friday, according to Mirror Media.
Market analysts said the TAIEX has recently entered a consolidation phase at relatively elevated levels. Next week’s market direction will depend partly on external factors, including developments in the Middle East and movements in global oil prices, according to CTEE.
Analysts also said market positioning remains an important factor to monitor. While US stocks have rebounded from recent lows, a renewed increase in trading with borrowed funds to buy stocks or other short-term leveraged activity could add instability, suggesting market sentiment has not yet fully settled.
Overall, analysts expect stock performance next week to focus on sectors with relatively stable investor positioning and visible capital inflows, including advanced semiconductor processes, packaging and testing services, and selected AI supply chain companies. However, with global conditions still uncertain, the market may continue to see rapid sector rotation, and investors are advised to avoid chasing short-term price increases.
First Capital Management Chair Huang I-ting (黃詣庭) said the recent pullback in Taiwan’s stock market follows earlier gains and does not change the broader upward trend. As companies continue releasing annual reports, he said investors may review corporate fundamentals and consider opportunities to build positions during price corrections, as strong performers could rotate across sectors this year.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research before making investment decisions.
