TAIPEI (Taiwan News) — Taiwan’s benchmark stock index regained the 44,000-point level on Wednesday as heavy trading continued.
The Taiwan Stock Exchange Capitalization Weighted Index, or TAIEX, rose more than 1,600 points during the session. It closed up 1,250.94 points, or 2.88%, at 44,611.6, recovering both its monthly and quarterly moving averages, according to Taiwan Index Plus and CTEE.
Turnover reached NT$1.14 trillion (US$35.2 billion), exceeding NT$1 trillion for the second consecutive session. Total market capitalization of listed companies stood at NT$145.74 trillion, according to the Taiwan Stock Exchange.
All of the index's largest-weighted stocks finished higher. TSMC gained 3.66% to close at NT$2,405, contributing 707.53 points to the TAIEX's advance, according to Anue.
MediaTek rose 3.49% to NT$4,000. Delta Electronics added 1.85% to NT$1,650, ASE increased 1.37% to NT$593, and Foxconn climbed 3.4% to NT$258.5.
Specialty memory shares continued to outperform. Etron Technology and Elite Semiconductor Microelectronics both closed at daily limit-ups, while Ap Memory Technology gained 6.08%, according to Sinotrade.
The segment has benefited from global memory manufacturers Micron Technology and SK Hynix allocating more conventional DRAM production capacity to higher-margin products such as high-bandwidth memory (HBM) and DDR5. The resulting supply constraints have supported prices for specialty memory products, including DDR3, DDR4, and NAND flash memory.
Optical communications and gallium arsenide (GaAs) stocks advanced as the use of high-speed data transmission technologies continued to expand. Browave, Visual Photonics Epitaxy, Advanced Wireless Semiconductor, and Global Communication Semiconductors all reached the daily price limit.
Optical components are becoming increasingly important in AI servers and data centers, where they enable faster data transmission to support growing computing workloads. GaAs, a second-generation semiconductor material made from gallium and arsenic, is suited for high-speed signal transmission and optical communication applications, according to Pocket Securities.
Copper-clad laminate manufacturers extended their gains, with Iteq and Taiwan Union Technology both reaching limit-ups. CCL is the core substrate used in printed circuit boards, which support electronic components and provide electrical connections between them.
The development of next-generation AI chips is increasing the need for PCBs with more layers. At the same time, overseas suppliers have faced difficulties expanding production capacity quickly, leading investors to focus on the potential for higher upstream material prices.
The textile sector, by contrast, has entered a period of consolidation. Eclat Textile, Tainan Spinning, and Yi Jinn Industrial declined as apparel brands in Europe and the US remained cautious about inflation and consumer spending in the second half of the year.
Huang Wen-ching (黃文清), president of Taishin Securities Investment Advisory, said the biggest variable for the TAIEX in the second half of the year remains US monetary policy. Renewed expectations of a ceasefire in the Middle East have lowered international oil prices, which could reduce inflationary pressure and limit the need for further interest rate increases.
Huang said the market has shown signs of establishing a bottom and moving higher. However, he noted that the TAIEX has gained 1,491.85 points, or 3.46%, since the beginning of August, and that the relatively rapid pace of the recent advance could result in greater short-term volatility.
He added that the likelihood of a significant decline has decreased, with stock selection expected to become increasingly important. Huang said small- and mid-cap stocks could attract greater investor attention, while the broader market could challenge a new record high before the end of the year.
Looking ahead, Huang said optical communications, memory, passive components, and cooling solutions could continue to provide support for the market. As companies release their financial results, he advised investors to focus on stocks with solid growth prospects and relatively low valuations following earlier pullbacks, while AI-related electronics and selected traditional industries with growth potential could benefit from sector rotation.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
