The Taiwan Stock Exchange, represented by the TAIEX, experienced a significant decline of over 600 points in its weekly performance, reflecting the prevailing market pressure. Despite a marginal increase of 6.37 points to close at 21,968.05, the overall sentiment remained subdued throughout the week. The total turnover amounted to NT$334 billion (US$10 billion), indicating substantial trading activity.

Notable market players like TSMC faced challenges, with the stock initially dropping to NT$955 before witnessing a further decline by NT$4 to close at NT$959. In contrast, companies like Foxconn and MediaTek maintained stability, with Foxconn observing a rise of NT$2 to NT$170, and MediaTek surging by NT$10 to NT$1,400.

Formosa Plastics, a key player in the market, reported its first annual loss in over two decades, recording a loss of NT$0.19 per share. However, the announcement of distributing NT$0.5 per share from retained earnings led to a positive movement in its stock price, rising by NT$2.7 to NT$39.95. This development also had a ripple effect on other petrochemical stocks, including Nan Ya Plastics, Formosa Chemicals & Fiber, and Formosa Petrochemical, which all saw gains exceeding 3.5%.

The market dynamics were influenced by global events, such as US President Donald Trump’s efforts to broker a ceasefire between Ukraine and Russia. This geopolitical development spurred gains in rebuilding concept stocks, providing support to Taiwan’s stock market. Additionally, bulk shipping stocks performed strongly, with companies like Wisdom Marine Lines and U-Ming Marine Transport showcasing notable surges.

In the tech sector, companies like Innolux and memory chip manufacturers experienced positive movements. Speculation surrounding a potential increase in memory chip prices, coupled with signs of recovery in the NAND flash sector, contributed to the sector’s solid performance. Panram International, Nanya Technology, and Winbond Electronics were among the companies that demonstrated growth during this period.

Despite these positive movements, market analyst Tsai Ming-han highlighted the challenges faced by the market, citing uncertainties related to tariff policies and the outcome of a US government spending bill. Tsai emphasized the importance of monitoring the impact of these factors and suggested a cautious approach for investors amid the current market conditions.

In conclusion, the Taiwan Stock Exchange’s recent performance reflects a mix of challenges and opportunities, influenced by both domestic and global factors. Investors are advised to conduct thorough research and analysis before making investment decisions in light of the evolving market landscape.