TAIPEI (Taiwan News) — Taiwan’s benchmark stock index ended above 46,000 points Monday after recovering from heavy early losses, as global markets retreated amid growing expectations of a US Federal Reserve rate hike.
The Taiwan Stock Exchange Capitalization Weighted Index (TAIEX) fell more than 800 points in early trading, briefly dropping below 45,000, before recovering most of its losses. It ended down 202.98 points, or 0.44%, at 46,128.47, according to Taiwan Index Plus and CTEE.
Turnover totaled NT$1.2 trillion (US$37.9 billion). The total market capitalization of listed companies stood at NT$150.79 trillion, according to the Taiwan Stock Exchange.
For August, the TAIEX gained 3,009.72 points, or 6.98%, recovering from levels around 43,000 points at the beginning of the month.
Among the market’s largest weighted stocks, TSMC fell 0.62% to NT$2,405, closing below its five-day moving average. MediaTek declined 1.51% to NT$3,925, according to Anue.
Foxconn lost 1.19% to NT$250, while ASE fell 5.96% to NT$584. Delta Electronics rose 0.55% to NT$1,840.
Printed circuit board maker Unimicron Technology closed limit-down at NT$999, losing NT$181.9 billion in market capitalization after authorities searched its offices Friday. The company is suspected of labeling China-made PCBs as Taiwan-made products, according to SETN and Liberty Times.
Unimicron is one of the market’s major large-cap electronics companies and ranks 10th by market capitalization. Data released after the market closed showed that foreign institutional investors and investment trusts were net buyers of the stock, purchasing 2,206 lots, or 2.206 million shares, and 42 lots, respectively.
Plastics stocks provided support for the broader market. Nan Ya Plastics and Formosa Chemicals & Fibre both closed limit-up, while Formosa Plastics gained 5.58%.
Stable global oil prices and seasonal restocking ahead of autumn have supported a recovery in prices for petrochemical intermediates and general-purpose resins. The plastics sector rose 8.91%, making it the best-performing sector of the day, according to Sinotrade.
Investors also favored stocks linked to co-packaged optics (CPO). The technology places optical communications components alongside computing chips to improve data transmission, according to StockFeel.
Largan Precision rose 8.28% to a record NT$7,735. Genius Electronic Optical also closed limit-up at NT$1,005, setting a new high.
Gallium arsenide-related stocks recorded gains. Visual Photonics Epitaxy closed limit-up, while LandMark Optoelectronics gained 6.81%. The shift toward Wi-Fi 7 and stronger demand for satellite communications have supported demand across the compound semiconductor supply chain.
Memory stocks serving niche markets were another area of strength. ESMT gained 8.53%, AP Memory rose 3.58%, and Etron Technology advanced 1.72%.
Major global memory manufacturers have shifted production toward HBM and DDR5, tightening supplies of DDR4 and niche memory products. Prices have risen, while stronger restocking demand from the automotive and internet-connected device sectors has provided additional support.
Senior analyst Lee Hsiu-li (李秀利) said trading volume increased in the final session as MSCI index adjustments took effect. The increased activity helped narrow the TAIEX’s losses, according to CTEE.
MSCI reviews its indexes four times a year, adding or removing companies and changing their weightings based on factors such as market value, liquidity, and trading activity. The indexes are used by funds and institutional investors as investment benchmarks, according to Sinotrade.
First Capital Management Chair Huang Yi-ting (黃詣庭) said the TAIEX had faced resistance after testing the 46,500-point level last week, limiting its room for further gains. She suggested that investors focus on individual sectors and stocks in the near term and maintain a relatively high cash position to respond more easily to market volatility and rapid shifts in investor interest between sectors.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
