Weighted Stocks Weaken, Taiex Plunges Over 700 Points in Mid-day Trading, Testing 44,000 Mark

(CNA, Taipei, Reporter Tseng Jen-kai, 10th) The rebound in U.S. technology stocks proved short-lived as the Philadelphia Semiconductor Index fluctuated sharply during Tuesday's session, ultimately closing down nearly 2%. The Taiwan stock market came under pressure today, falling by more than 700 points at its lowest and losing the 44,000-point mark. As of 10:30 AM, the TAIEX was down 554.56 points at 44,149.88, with a turnover of approximately NT$610.7 billion.

The four major weighted stocks all fell. TSMC dropped by as much as NT$35 to NT$2270; MediaTek fell by up to NT$175 to NT$4300; Delta Electronics declined by a maximum of NT$150 to NT$2265; and Hon Hai was down as much as NT$7.5 to NT$270.

The passive components sector showed strong performance today. Industry leader Yageo surged to its limit-up price of NT$908, a new high since its stock split, leading a rally among other stocks like Ta-I, Nikkohm, Bothhand, Walsin, Ralec, and M-TEK, which also hit their limit-ups.

Furthermore, Largan Precision has made significant progress in its venture into CPO (Co-Packaged Optics). Chairman Lin En-ping revealed at the shareholders' meeting on the 9th that the first automated trial production line is expected to be established before September. The stock hit its limit-up for the second consecutive day in today's trading, reaching NT$4270.

Kevin Lou, Vice President of the Investment Strategy Department at Nomura Asset Management Taiwan, analyzed that the recent market has been affected by renewed tensions in the Middle East, causing volatility in international stock markets and heightening short-term risk sentiment. However, compared to the more conservative atmosphere in international markets, Taiwan's stock market still shows relative strength in its fundamentals and industry trends. Supported by several positive factors, the overall structure remains bullish.

Lou pointed out that the Taiex has been hitting new highs over the past year, making a moderate correction a reasonable phenomenon. He observed that before this correction, there were already signs of capital rotation in the market, with financial stocks and undervalued sectors showing relative resilience. This indicates that capital has not completely withdrawn but is being reallocated among different industries. (Editor: Lin Chia-hsien) 1150610