Taiwan’s stock market surged on Monday, recapturing the 20,000-point milestone as the day progressed. The Taiwan Stock Exchange Capitalization Weighted Stock Index, known as TAIEX, climbed 161.68 points to end the trading day at 20,034.41, with a total turnover of NT$215 billion (US$6.6 billion).
Some key players in the market contributed to this upswing. Taiwan Semiconductor Manufacturing Company (TSMC) saw a 1.01% increase, closing at NT$897 (US$28), while Foxconn rose by 2.52% to NT$142.5. However, MediaTek experienced a slight dip of 2.17%, closing at NT$1,350 after an initial surge lost momentum.
One of the market movers was TSMC, which unveiled its latest innovation, the Compact Universal Photonic Engine, during a technology symposium. This advancement in Co-Packaged Optics (CPO) technology aims to enhance AI computing capabilities by integrating optics and silicon into a single package to cater to future bandwidth and power requirements.
Following TSMC’s announcement, stocks related to CPO technology witnessed a rally. Foci Fiber Optic Communications hit the daily limit, while companies like TrueLight, Elite Advanced Laser, Apogee, and LandMark Optoelectronics saw gains ranging from 4% to 7%.
Largan Precision, a significant player in Taiwan’s tech industry, faced a setback as it became embroiled in an insider trading probe. Its shares declined by 0.67%, closing at NT$2,210.
Concurrently, reports emerged of the US Department of Justice investigating Chinese networking equipment manufacturer TP-Link for antitrust violations. This development raised expectations that orders might shift towards Taiwanese networking firms, resulting in a surge for companies like Edimax Technology, Comtrend, and Zyxel Communications.
Meanwhile, cybersecurity stocks maintained their strong performance from the previous week, with Fortune Information Systems reaching a 25-year high and others like K Way Information, Azion, and Insyde Software hitting the daily limit.
In the financial sector, CTBC Financial Holding led the way following an enhanced dividend policy announcement, proposing a cash dividend of NT$2.3 per share, the highest among the disclosed financial holding companies. CTBC shares opened higher, breaking through the monthly moving average and dominating the day’s trading volume.
On the biotech front, Taiwan’s first listed veterinary pharmaceutical company, Vetnostrum, made a remarkable debut, soaring over 30%. Other biotech stocks such as Formosa Pharmaceuticals and GlycoNex also performed strongly, hitting the daily limit.
Market analyst Tsai Ming-han noted that the easing US-China trade tensions and a rebound in US stocks have positively impacted Taiwan’s market. Tsai highlighted the influence of major tech companies’ earnings reports like Google’s parent company Alphabet and upcoming reports from tech giants like Apple, Microsoft, and Meta on Taiwan’s stock market.
As the earnings season unfolds, investors are advised to conduct thorough research before making investment decisions, keeping an eye on the evolving market trends and developments.
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