TAIPEI (Taiwan News) — Taiwan’s benchmark stock index rose above 48,000 points for the first time intraday on Tuesday before easing later in the session as profit-taking weighed on gains.
The Taiwan Capitalization Weighted Stock Index (TAIEX) rose to an intraday high of 48,218.87 points before reversing course to close down 640.86 points at 47,100.65.
Turnover totaled NT$1.6 trillion (US$50.6 billion). The combined market capitalization of listed companies stood at NT$153.68 trillion, according to the Taiwan Stock Exchange.
Four of the five largest index-weighted stocks, which have the greatest influence on TAIEX movement, ended lower. TSMC briefly hit an intraday record high of NT$2,535 before ending down 0.8% at NT$2,490, according to Anue.
Delta Electronics lost 3.26% to NT$2,080. Foxconn fell 3.35% to NT$259.5, and ASE dropped 1.78% to NT$662.
In contrast, MediaTek gained 1.57% to NT$4,535 after reports that it secured a key order for Google’s ninth-generation Tensor Processing Unit, overtaking Broadcom in the supply chain. The development helped support other chip design stocks.
Champion Microelectronic, Tmy Technology, and Artery Technology rose by their daily limits. Alcor Micro and AlgolTek rose more than 9%, according to CTEE.
UMC stood out, climbing to a 37-year high of NT$176 before closing up 6.25% at NT$170. The gains were supported by reports of expanded cooperation with Intel on advanced process development, alongside expectations of price increases in mature-node chips.
Demand for third-generation semiconductor epitaxial wafers, known for high efficiency and high voltage tolerance, continued to strengthen, supporting related suppliers. Episil Technologies and Episil Precision both rose by their daily limits for a second consecutive session, closing at NT$100.5 and NT$152.5, respectively.
Other names, including Panjit International, Eris Technology, and Advanced Power Electronics, also rose by their daily limits. Amulaire Thermal Technology and Actron Technology declined more than 4%, indicating short-term sector rotation and profit-taking.
Memory-related stocks were among the weakest performers despite a strong overnight session for Micron Technology. Market leader Nanya Technology fell by its daily limit, while Winbond Electronics, Macronix International, Phison Electronics, Apacer Technology, Adata Technology, and Team Group each fell more than 4% as investors locked in gains ahead of upcoming earnings.
Passive component makers, which had recently rallied, also came under pressure. Yageo fell 4.23%, while Apaq Technology, Acme Electronics, Viking Tech, and Holy Stone Enterprise all fell by their daily limits.
The glass sector, which had also recently rallied, was the weakest performer. Taiwan Glass fell nearly 9%, while the glass sub-index declined more than 8%, reflecting a rapid shift of funds away from previously favored groups.
Sectors generally viewed as relatively stable, including food, financials, and retail, held in positive territory. Despite the broader pullback, market participation remained active. A total of 43 stocks rose by their daily limits, while 11 fell by their daily limits.
Senior analyst Chien Po-yi (簡伯儀) said recent gains in Taiwan’s stock market have largely been driven by Taiwan index futures. He noted that weaker futures performance on Tuesday weighed on the broader market, suggesting investors should monitor whether downside pressure continues to ease, according to CNA.
If selling pressure gradually subsides, the index’s pullback may remain limited, Chien said. He added that the TAIEX could potentially retest the 48,000-point level.
E Sun fund manager Wang Wei-che (王偉哲) said a lower probability of near-term US Federal Reserve rate cuts could increase market volatility. He advised investors to reduce exposure to highly valued stocks and increase allocations to companies with solid fundamentals and clear growth prospects, according to CTEE.
CTBC fund manager Lo Shih-ming (羅世明) said global equity valuations continue to reflect expectations of economic expansion, while easing inflation could support markets in the second half of the year. He added that sector preference remains tilted toward technology, particularly semiconductor testing and chip design, along with selective exposure to electrical machinery stocks.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
