TAIPEI (Taiwan News) — Taiwan’s stock market closed higher Tuesday after the benchmark index reached an intraday record high, though gains narrowed.
The Taiwan Capitalization Weighted Stock Index, or TAIEX, rose 108.26 points to close at 41,898.32. During trading, the index reached a record high of 42,253.42 and fluctuated by as much as 781.85 points, according to CNA and CTEE.
The benchmark index has now traded above the 42,000-point level for four consecutive sessions. Turnover totaled NT$1.38 trillion (US$43.6 billion), reflecting sustained liquidity and broad participation across technology-related sectors.
TSMC rose 0.89% to close at NT$2,255. Delta Electronics fell 2.23% to NT$2,195, MediaTek dropped 4.64% to NT$3,700, and Foxconn declined 0.79% to NT$250.
Another major wafer foundry firm, UMC, hit its daily limit-up and closed at NT$104.5. This marked its highest share price in 26 years.
Buying interest was not limited to large artificial intelligence-related stocks. Funds also rotated into optoelectronics, silicon photonics, and advanced materials sectors, according to CTEE.
Several co-packaged optics-related companies closed at their daily limit-up, driven by the shift of silicon photonics components placed closer to server switches. These include Mpi, Largan Precision, Elite Advanced Laser, Materials Analysis Technology, LandMark Optoelectronics, Pcl Technologies, TrueLight, and IntelliEpi.
Silicon photonics uses light instead of electrons to transmit signals on chips. It has drawn increasing attention to growing AI demand, as optical transmission enables faster data speeds and lower heat generation in data-intensive environments, according to Business Next.
Display panel makers also gained, supported by rising panel prices, improving operating outlooks, and expectations that the upcoming FIFA World Cup could boost television replacement demand. Innolux, AUO, and HannStar Display all closed at their daily limit-ups.
Meanwhile, the newly listed UPAMC Taiwan Elite 50 Active ETF (00403A) recorded heavy debut trading volume of more than 4.18 million lots, equivalent to 4.18 billion shares. The ETF rose 5.88% to close at NT$10.8.
Active ETFs were introduced in Taiwan in May last year as a new product category. Unlike traditional passive ETFs such as the Yuanta/P-shares Taiwan Top 50 ETF, which tracks Taiwan’s 50 largest listed companies by market value, active ETFs are managed by fund managers who can adjust holdings based on market conditions, research views, or strategy shifts, according to Bank Sinopac and Money101 and Dawho.
Yang Li-kai (楊立楷), manager of the E Sun Taiwan Market Capitalization Momentum 50 ETF, said trading value has remained above NT$1 trillion since the TAIEX moved past the 40,000-point level. This indicates ample market liquidity.
Yang said Nvidia’s upcoming earnings report could lead to short-term profit-taking pressure. The widening gap from monthly moving averages may increase the likelihood of near-term volatility.
He noted that concerns remain over the traditionally weaker second quarter. However, there are currently no clear signs of a market reversal based on technical, fundamental, or capital flow indicators.
Yang also said the upcoming Computex trade show in early June could continue to attract investor attention to AI-related stocks. In addition, strong capital expenditure plans from major US cloud service providers are improving earnings expectations for Taiwan’s AI supply chain.
Yang pointed out that several sectors are helping support the broader market rally. These include semiconductor packaging and testing, integrated circuit substrates, and passive components, which are benefiting from expectations of price increases.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
