TAIPEI (Taiwan News) — Taiwan's benchmark stock index closed lower on Tuesday as selling pressure spread across the market.
The Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX) fluctuated by more than 1,500 points during the session. It closed down 1,077.28 points, or 2.31%, at 45,479.11, according to Taiwan Index Plus.
Turnover totaled NT$1.17 trillion (US$36.4 billion). The total market capitalization of listed companies stood at NT$148.44 trillion, according to the Taiwan Stock Exchange.
The market's largest index-weighted stocks, which have the greatest influence on the TAIEX, led the decline. TSMC closed at NT$2,440, down 0.81%, according to Anue.
MediaTek traded ex-dividend on Tuesday, a factor that typically results in a lower share price. The chip designer briefly recovered before turning lower to finish the session down 1.71% at NT$4,030, according to CTEE.
Delta Electronics fell 5.26% to NT$1,890. Foxconn declined 2.07% to NT$237, while ASE closed down 4.12% at NT$651.
Copper-clad laminate leader Elite Material fell 4.66% to NT$5,220 after SemiAnalysis reported that a key printed circuit board component in Nvidia's Kyber NVL144 rack system is facing manufacturing bottlenecks, potentially delaying the system's launch, according to CTEE.
PCB makers Kinsus Interconnect Technology, Lincstech, and AboCom Systems each fell more than 4%. CCL is the core material used to manufacture PCBs that enable high-speed computing required for AI servers, according to Business Next.
Leading electronics sectors also came under selling pressure. Passive component manufacturers, which had recently outperformed the broader market, were among the weakest performers.
Yageo, Walsin Technology, and Holy Stone Enterprise all closed at daily limit-downs. Lelon Electronics and King Core Electronics each lost about 8%.
Power semiconductor stocks also declined, indicating that short-term funds continued rotating out of sectors that had previously led market gains. Eris Technology, Excelliance Mos, and Potens Semiconductor closed at limit-downs, while Sdi, Episil-Precision, Niko Semiconductor, and Taiwan Semiconductor each fell more than 6%
Memory stocks lowered after shares of global leaders Samsung Electronics and Micron Technology weakened. Nanya Technology, Winbond Electronics, and Macronix International each fell between 3-4%.
Funds rotated into defensive sectors, which are generally viewed as more resilient during periods of market volatility, with biotechnology among the best-performing sectors. Caliway Biopharmaceuticals, Tcm Biotech International, and HanchorBio all closed at daily limit-ups.
Market analysts said investors became more cautious on Tuesday, with buying momentum easing and profit-taking emerging after recent gains. Weaker performances across other Asian markets also weighed on investor sentiment, according to CTEE.
Although Samsung reported preliminary second quarter earnings above market expectations, the results failed to drive further gains. Profit-taking in the stock weighed on semiconductor and electronics shares, contributing to the broader decline in Taiwan's market.
E Sun fund manager Yang Li-kai (楊立楷) said that although the market remains under correction pressure, buying interest at lower price levels has stayed active, while sector rotation continues. This suggests capital remains in the market and is shifting between sectors rather than leaving equities.
Yang said Taiwan's stock market remains in a period of consolidation at relatively high levels. Based on previous pullbacks following strong rallies, the index has generally found support near its monthly moving average.
He added that earnings conferences hosted by leading optical lens manufacturers and leading memory chip makers are scheduled this week, while TSMC will hold its earnings conference later this month. The events could encourage investors to build positions in advance.
Yang also noted that TSMC's commercialization of advanced chip packaging CoPoS technology is driving a new wave of investment in panel-level packaging equipment. He expects suppliers of advanced inspection equipment, panel-level packaging equipment, automated factory systems, and related materials to see order growth of 35-40% in the second half of the year.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
