Taiwan’s stock market experienced a slight decline on Friday following a volatile trading session, with investor optimism wavering amidst uncertainties surrounding potential new US semiconductor tariffs. The Taiwan Stock Exchange Capitalization Weighted Stock Index, known as TAIEX, closed lower by 18.72 points at 21652.24, with a total turnover of NT$308 billion (US$10 billion).
Notable market movements included TSMC facing early selling pressure after adjustments to its target price by foreign investors. Despite a brief dip, the stock managed to close 0.2% higher at NT$984. Meanwhile, MediaTek saw a 0.75% decline at NT$1,315, and Foxconn edged up 0.65% to NT$154.
Nvidia’s announcement of plans to establish operations in Taipei’s Beitou Shilin Science and Technology Park continued to have a positive impact on related stocks. Shinkong Textile and Shihlin Paper both hit their daily trading limits, with Shinkong Textile witnessing a remarkable over 70% surge in the past six sessions.
Shinkong Textile, owning substantial land assets across Taiwan and focusing on apparel brand agency operations, has been introducing international clothing lines and developing in-house labels. Another standout performer was Appro Photoelectron, which closed at its daily limit for the fourth consecutive session due to sustained investor interest in AI server-related stocks.
Sector performance varied, with the glass and ceramics sector rising nearly 1.5%, paper stocks adding over 1.2%, and tourism-related shares increasing slightly over 1%. On the other hand, the electronics and semiconductor sectors, despite dominating trading volume, experienced slight declines of 0.02% and 0.13%, respectively.
Wei Yong-xiang, Taishin China Equity Fund Manager, highlighted the significance of monitoring US trade policies and key economic data like inflation and employment for their potential impact on Taiwan’s market outlook. He emphasized that new US tariffs on semiconductors could disrupt Taiwan’s supply chain and add pressure to the local technology sector.
Wei expressed confidence in the TAIEX’s recovery phase, buoyed by the National Stabilization Fund’s continued involvement. He anticipated sector rotation to drive gains into June and advised investors to focus on companies with robust long-term fundamentals for sustained growth.
As investors navigate market uncertainties and shifting global dynamics, staying informed and conducting thorough research remain crucial in making sound investment decisions, ensuring a proactive approach in navigating the ever-evolving landscape of the Taiwan Stock Exchange.
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