Foreign investors have continued to withdraw funds from the Taiwan Stock Exchange, marking the market’s tenth consecutive day of outflows. The sustained selling pressure from foreign investors is attributed to concerns surrounding trade tariffs, which have contributed to a negative market sentiment.

On the latest trading day, foreign investors pulled out approximately NT$328 billion (US$10 billion) from the market. Notably, there was a significant reduction in holdings of Taiwan Semiconductor Manufacturing Company (TSMC), with foreign investors selling close to 13,000 shares. Concurrently, there was a shift in investment focus towards China Steel, with foreign investors purchasing over 35,000 shares in the company.

The Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX) closed down by 116.92 points at 22459.15, reflecting the prevailing selling trend. The total turnover for the day amounted to NT$338 billion. TSMC experienced a decline of NT$7 to close at NT$998, while MediaTek also saw a decrease, falling below NT$1,400. In contrast, Foxconn’s stock remained unchanged at the end of the session.

Within the market, certain high-priced stocks experienced declines, such as Alchip Technologies and Elite Advanced Laser Corp. However, memory stocks performed well, benefiting from the increasing prices of NAND flash memory. Companies like Winbond Electronics, Phison Electronics, Adata Technology, and Transcend Information ended the session on a positive note.

In terms of traditional industries, Taiwan Glass, Formosa Petrochemical, and various food stocks including Oceanic Beverages, Uni-President, Taisun, and AGV Products recorded notable gains. This diversification across different sectors indicates a mixed performance within the market.

Market experts, including Fuh Hwa Omni Fund manager Lu Hung-yu, have highlighted the impact of fluctuating US tariff policies and recent economic indicators suggesting a potential slowdown on market volatility. Additionally, concerns have been raised regarding the earnings guidance provided by major US AI companies like Marvell, which has put pressure on AI-related stocks.

Despite short-term uncertainties, Lu emphasized TSMC’s strong position in advanced processes and its ability to navigate challenges, given its core technologies based in Taiwan. This strategic advantage, coupled with the mitigation of risks related to high US tariffs on Taiwan’s semiconductor industry, provides some stability to the market.

Looking ahead, Lu anticipates continued market turbulence in the short term but believes that the broader market and tech stocks are undergoing a consolidation phase. He advises investors to explore opportunities in high-dividend and non-tech sectors amidst ongoing sector rotations, emphasizing the importance of conducting thorough research before making investment decisions.

In conclusion, the persistent outflows of foreign funds from the Taiwan Stock Exchange reflect the complex interplay of global economic factors and market dynamics, underscoring the need for investors to stay informed and agile in navigating the evolving landscape of the financial markets.