TAIPEI (Taiwan News) — Taiwan’s stock market closed lower Friday, tracking Wall Street as uncertainty over developments in the Middle East weighed on investor sentiment.
The Taiwan Capitalization Weighted Stock Index, or TAIEX, fell as much as 668.23 points earlier in the session to a low of 32,669.39 before narrowing losses. The index ended the day down 225.03 points at 33,112.59.
Turnover totaled NT$631 billion (US$19.7 billion). For the week, the index declined 431.29 points.
TSMC fell 1.09% to NT$1,820. Foxconn closed down 0.5% at NT$199.5, Delta Electronics declined 0.33% to NT$1,510, and MediaTek fell 0.31% to NT$1,585.
Memory shares also moved lower after Google researchers published an article introducing TurboQuant, a data compression method designed to reduce the memory requirements of AI models. The algorithm compresses key-value data used by AI systems while maintaining the same level of accuracy, according to Forbes.
The report stated that TurboQuant can reduce memory usage by at least six times, raising concerns that improved data compression could reduce demand for memory chips. Nanya Technology closed at NT$219.5, down 2.66%, Winbond fell 3.25% to NT$92.4, and Macronix dropped 2.34% to NT$125.
Low Earth orbit satellite-related stocks extended recent gains after reports that Elon Musk is considering allocating up to 30% of SpaceX’s planned initial public offering to individual investors. The listing could become the largest IPO in history, accelerating plans for a potential June debut that would value the rocket and satellite company at more than NT$56 trillion, according to Reuters and the International Business Times.
Compeq Manufacturing, Microelectronics Technology, and Cybertan Technology each closed at the daily limit-up. Unitech Printed Circuit Board reached NT$82.3, its highest level in nearly 28 years, with trading volume exceeding 300,000 lots, or about 300 million shares.
Paper stocks also rose after concerns circulated about possible shortages of household paper products. Chung Hwa Pulp closed at the daily limit-up of NT$15.4 after announcing another price increase for April, marking the seventh consecutive monthly adjustment.
Baolong, Longchen Paper and Packaging, and Yuen Foong Yu also posted gains. The overall listed paper sector index rose more than 2%.
Funds also moved toward raw material shares as oil prices remained elevated. Usi and Taita Chemical reached the daily price limit during the session, while Asia Polymer rose more than 7% before the stocks moderated later in the day.
Lu Chin-wei (呂晉維), senior manager at Concord Capital Management, said trading volume declined as investors adopted a cautious stance. Interest in bargain hunting remained limited following the market’s gains earlier this year.
Analysts said the session reflected a market driven by risk events, with funds rotating away from higher-valuation electronics and memory stocks and into paper, chemicals, and other raw-material sectors. They expect the TAIEX to trade between 31,950 and 34,000 points in the near term, according to CTEE.
They added that any escalation of conflict in the Middle East could increase market volatility and test the TAIEX's lower support levels. Investors are advised to focus on sectors with clear themes and stable fund flows while avoiding aggressive buying in a volatile market.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research before making investment decisions.
