TAIPEI (Taiwan News) — Taiwan’s stock market on Wednesday overtook the UK to become the world’s seventh-largest by total market capitalization of listed companies, supported by gains in technology shares.
Data compiled by Bloomberg showed that as of Wednesday, the total market value of Taiwan-listed stocks reached NT$130.8 trillion (US$4.14 trillion). The UK's stood at NT$129.2 trillion (US$4.09 trillion).
The rally followed a recovery in the Taiwan Capitalization Weighted Stock Index (TAIEX), which rebounded from losses linked to tensions in the Middle East. The index was among the first major markets to recover and move to new highs, according to CNA.
The TAIEX continued to set new highs during trading and at the close on Thursday. Yoon Ng, who leads growth solutions for the Asia-Pacific region at Broadridge Financial Solutions, said Taiwan is widely viewed as closely tied to AI hardware demand, and continued capital spending in the sector is expected to support fund inflows.
Shares of chipmaker TSMC, the market’s most heavily weighted stock, also reached fresh records. Senior analyst Chien Po-yi (簡伯儀) said that if the company maintains a positive outlook, the index could continue to move higher, according to CTEE.
From the start of the month through Thursday, the TAIEX has risen about 16% and recorded gains for eight consecutive trading sessions. Over the same period, the UK’s benchmark Financial Times Stock Exchange 100 Index (FTSE 100) has risen by less than 4%, as concerns persist over high inflation and interest rates remaining above those in other parts of Europe.
Despite this, UK stocks are drawing renewed interest as geopolitical uncertainty rises, as their larger exposure to energy and defensive sectors is seen as offering more stability. Analysts at major banks, including Barclays, Citigroup, and HSBC, view the FTSE 100 as a preferred option in the current environment, according to LTN.
Chien said recent TAIEX trading has seen higher turnover, indicating support at elevated levels. Since April 7, the index has mostly closed higher, while the over-the-counter market has been stronger, led by active trading in semiconductor and optoelectronics stocks.
