TAIPEI (Taiwan News) — Taiwan’s benchmark stock index came under increasing selling pressure Monday as heavyweight shares turned lower.
The Taiwan Stock Exchange Capitalization Weighted Index (TAIEX) closed down 461.97 points, or 1.02%, at 44,762.32. Turnover fell to NT$629.4 billion (US$19.77 billion), the lowest since April 8, according to Taiwan Index Plus and CTEE.
The market’s most heavily weighted stocks dragged down the index, with TSMC falling 1.45% to close at NT$2,375. MediaTek declined 0.66% to NT$3,765.
Delta Electronics dropped 0.86% to NT$1,735, and Foxconn fell 0.81% to NT$243.5. ASE gained 0.85% to NT$592, according to Anue.
UMC rose 6.01% to NT$123.5 on the second-highest trading volume among individual stocks. The chipmaker reported first-half consolidated revenue of NT$129.8 billion, up 11.28% from a year earlier and the second-highest level for the same period.
UMC has also invested in silicon photonics foundry services for more than 10 years, according to recent reports. Market research firm Yole estimates that the global silicon photonics market will grow from NT$8.85 billion in 2024 to NT$85.96 billion by 2030. The estimated annual growth rate of 46% is higher than the roughly 30% expected for AI high-performance computing chips, per CTEE.
High-priced stocks were also in focus. King Slide Works rose 7.66% to NT$14,410, narrowing the gap with Aspeed Technology, the TAIEX’s highest-priced stock at NT$15,115.
Myson Century hit its daily limit for a seventh consecutive session, closing at NT$28.6. The company benefited from strong demand in the health and wellness market and improving results from its biotechnology and health products business, according to Sinotrade.
The memory sector attracted buying interest. ESMT hit its daily limit, while Adata Technology, Phison Electronics, PSMC, and Albatron Technology all gained more than 2%.
With heavyweight shares under pressure, several other sectors drew buying interest. Computer peripheral stocks performed strongly, with Lite-On Technology hitting its daily limit, while Compal Electronics, Leadtek Research, and Asrock Rack all gained more than 6%.
Silicon wafer stocks stood out after reports that prices for 6-inch, 8-inch, and 12-inch wafers were being raised. Formosa Sumco Technology and Avid Electronics both hit their daily limits, while GlobalWafers gained 7.33% to NT$1,010. Sino-American Silicon Products and Wafer Works also moved higher.
Petrochemical stocks came under pressure. Formosa Petrochemical fell 7.78%, while Formosa Plastics, Nan Ya Plastics, and Formosa Chemicals & Fibre all declined more than 4%.
Other recently popular sectors, including printed circuit boards, shipping, passive components, and optical communications, also saw profit-taking. Among PCB stocks, APCB hit its daily limit down, while Glotech Industrial fell nearly 9%. In optical communications, LandMark Optoelectronics, Visual Photonics Epitaxy, and LuxNet all declined more than 5%.
Analyst Yang Huei-yu (楊惠宇) said the market had recently been weighed down by profit-taking and selling by investors seeking to cut losses on shares purchased at higher prices. With trading volume falling, the TAIEX is likely to remain in consolidation as investors assess their next moves.
She said the recent consolidation could help clear out weaker positions and lay the groundwork for a recovery. Yang expects individual stocks to remain the focus until the broader market shows clearer signs of recovery and trading activity picks up, per CTEE.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
