TAIPEI (Taiwan News) — Taiwan’s benchmark stock index closed lower on Friday as buying momentum weakened and investors monitored the market’s direction.
The Taiwan Stock Exchange Capitalization Weighted Index, or TAIEX, fell 170.79 points, or 0.38%, to close at 44,225.91. Turnover declined to NT$819.2 billion, according to Taiwan Index Plus and CTEE.
For the week, the TAIEX gained 1,106.16 points, or 2.57%. The total market capitalization of listed companies stood at NT$144.56 trillion, according to the Taiwan Stock Exchange.
Among the index’s most heavily weighted stocks, TSMC was the only gainer. The chipmaker edged up 0.21% to close at NT$2,370.
MediaTek declined 0.51% to NT$3,900. Delta Electronics fell 1.79% to NT$1,650, Foxconn dropped 1.7% to NT$260, and ASE lost 1.68% to NT$585.
After becoming the third TAIEX-listed stock to top NT$10,000 per share on Thursday, King Slide Works continued its rally. The server rail provider closed at its daily limit-up at NT$11,110.
The gains followed the company's fifth consecutive monthly revenue record in July. King Slide is expected to continue benefiting from demand for thinner and stronger server rails as AI-driven data center upgrades accelerate.
Automation and robotics stocks attracted investor attention ahead of the Taipei Automation Exhibition, which opens on Wednesday. Expectations for stronger demand from humanoid robots and smart manufacturing investments also supported related domestic suppliers, according to Sinotrade.
Taiwan Benefit hit its daily limit, while EverFocus Electronics and Ibase Technology gained more than 9%. Usun Technology, TBI Motion Technology, Aurotek, Techman Robot, and Hiwin Technologies closed higher.
Investors shifted some funds into relatively defensive stocks, such as pharmaceutical ingredient suppliers and biotechnology companies, which are often viewed as more resilient during periods of market volatility. Chunghwa Chemical Synthesis & Biotech reached its daily limit, while SCI Pharmtech rose 6.06% and ScinoPharm Taiwan gained 1.34%.
Interest also extended to the steel sector, with Hsin Kuang Steel reaching the daily limit and Chung Hung Steel and Tung Ho Steel recording gains. A recovery in global steel prices and increased demand from domestic infrastructure projects and technology-related factory expansions have supported shipments from steel producers.
In contrast, passive component stocks faced selling pressure as institutional investors adjusted positions after recent gains. Slower demand from consumer electronics markets and weaker-than-expected restocking activity prompted investors to lock in gains across the sector.
Industry leader Yageo fell 5.26%. Holy Stone Enterprise declined 9.78%, and Walsin Technology, Prosperity Dielectrics, Nichidenbo, and Honey Hope Honesty also moved lower.
Analysts said that while the index has pulled back after posting its biggest single-day gain last week, there are no clear signs that the broader uptrend has been disrupted. Lower trading volume suggests the market is taking a breather after the recent recovery, according to CTEE.
They added that the market is gradually shifting from a broad-based rebound to greater focus on individual stock performance and fundamentals. While most shares tend to rise together early in a recovery, differences emerge as investors focus more closely on earnings prospects and company fundamentals.
Under this environment, individual stocks may follow different trajectories even as the broader market consolidates. Companies with weaker growth potential that benefited mainly from earlier price recoveries could encounter resistance, while firms with improving fundamentals may attract renewed buying interest during market pullbacks.
In the near term, the market will be guided by whether support holds around the five-day moving average, changes in trading volume, and whether recent lows continue to move higher. Attention is expected to shift from the recent recovery toward fourth-quarter results and companies’ outlooks for 2027.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
