TAIPEI (Taiwan News) — Taiwan’s benchmark stock index continued its gains on Thursday, closing above the 46,000-point mark as trading volume increased.
The Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX) closed up 503.41 points, or 1.11%, at 46,021.48. Turnover totaled NT$1.05 trillion (US$32.7 billion), compared with NT$858.7 billion in the previous session, according to Taiwan Index Plus and CTEE.
Among the index’s most heavily weighted stocks, TSMC closed 0.83% higher at NT$2,435. MediaTek and Delta Electronics recorded notable gains, rising 5.23% and 5.31%, respectively, to NT$4,225 and NT$1,885, according to Anue.
ASE edged up 0.81% to NT$626. In contrast, Foxconn fell 2.96% to NT$262.
Investors returned to passive component stocks following a recent pullback, as the sector remained supported by increased orders for AI servers, high-end industrial equipment, and automotive electronics. Industry leader Yageo, Walsin Technology, Kaimei Electronic, Tai-Tech Advanced Electronics, and Prosperity Dielectrics all reached their daily limits, according to Sinotrade.
Before the market opened, Morgan Stanley Capital International (MSCI) announced the results of its quarterly index review. Six Taiwanese stocks were added, which could potentially prompt funds that track MSCI indexes to buy the shares.
Memory chip leaders Nanya Technology, Winbond Electronics, and Phison Electronics were among those added, supporting buying interest in the sector. South Korean manufacturers have also shifted production toward higher-end memory products, reducing supplies of DDR4 products and lifting prices for Taiwanese firms.
Nanya Technology gained 6.53%. Phison rose 3.17%, while Winbond was unchanged.
Silicon wafer and related equipment stocks continued strong gains. GlobalWafers, Wafer Works, Formosa Sumco Technology, and All-Ring Tech all reached their daily price limits.
Silicon wafers form the foundation for chip manufacturing. Analysts estimate that the global silicon wafer supply shortfall could reach 8% by the end of this year, widening to 15% next year and 24% by the end of 2028, according to CTEE.
Information services provider Systex reached its daily limit after Taiwan Mobile announced plans to acquire common shares through a wholly owned subsidiary. Taiwan Mobile is targeting at least a 39% stake, which would bring its total ownership of Systex to more than 50%, according to CTEE.
Bicycle stocks continued their correction as investors took profits at higher price levels in the absence of fresh short-term catalysts. Giant Manufacturing fell 3.67%, while Merida Industry declined 8.36%.
Concord Capital Management senior manager Lu Chin-wei (呂晉維) said concerns over heavy spending by major cloud providers and its impact on cash flow had eased. Strong earnings from US AI companies also supported technology stocks, helping lift Taiwan’s market.
Senior analyst Chien Po-yi (簡伯儀) said turnover had also risen above NT$1 trillion, while the TAIEX remained above all major moving averages, which continued to trend upward in the short term. He expected the market to remain on an upward trend in the near term, according to CTEE.
However, Chien noted that the TAIEX had fallen nearly 9,000 points during its previous downturn before recovering 6,600 points, or more than 70% of the decline. As the index approaches its previous resistance level, the gap between the index and its short-term moving averages has widened, raising the possibility of a period of consolidation.
Market sentiment has recovered, led by passive component stocks and companies with solid second-half fundamentals. Chien said the market could remain on an upward trend as long as the TAIEX stays above its five-day moving average, and recommended optical communications, semiconductor materials and equipment, and passive components.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
