Philly Semiconductor Index Plunges Over 7%, Investment Firm Warns of Sharp Volatility After Taiwan Stock Market Reaches New High

(CNA) - Memory and semiconductor stocks experienced a sell-off, with the U.S. Philadelphia Semiconductor Index plummeting 7.87% and Taiwan Semiconductor Manufacturing Co. (TSMC) American Depositary Receipts (ADRs) closing down over 6%. An investment firm pointed out that while the Taiwan stock market is supported by the fundamentals of artificial intelligence (AI), foreign investors' net futures short positions continue to increase to over 76,000 contracts. Yesterday, the Taiwan stock index reached a new high with a 19% deviation from its quarterly moving average, and sharp market volatility should still be guarded against.

Under the impact of a sharp decline in South Korean memory chip makers, U.S. chip stocks fluctuated significantly on the 23rd. Micron and SanDisk fell by more than 13%. The Dow Jones Industrial Average closed down 45.87 points, or 0.09%, at 51666.84. The S&P 500 index fell 107.33 points, or 1.44%, to close at 7365.46. The Nasdaq Composite Index, dominated by tech stocks, plunged 579.56 points, or 2.21%, to close at 25587.04. The Philadelphia Semiconductor Index plummeted 1152.21 points, or 7.87%, to close at 13482.51.

On the 23rd, the Taiwan stock market's main index surged to a historic high of 48218.87 points in early trading. TSMC, a constituent stock, briefly reached a new high of NT$2535. Subsequently, profit-taking selling pressure emerged, with heavy selling in memory and passive component sectors. The weighted index closed at the day's low of 47100.65, down 640.86 points, or 1.34%.

On the 23rd, major institutional investors collectively sold NT$48.36 billion worth of Taiwan stocks. Proprietary traders sold NT$16.984 billion, ending their two-day buying streak. Investment trusts bought NT$7.216 billion, ending their three-day selling streak. Foreign and Chinese investors sold NT$38.592 billion, ending their two-day buying streak.

In terms of industry news, wafer foundry UMC announced its self-assessed net profit attributable to the parent company for May was NT$8.449 billion, a year-on-year increase of 2.03 times, with earnings per share of NT$0.68. UMC plans to implement price increases in the second half of the year to cope with rising costs and will further adjust prices comprehensively next year.

Wang Zuo International, which owns restaurant brands such as Ginza Anzu Japanese Pork Cutlet and Kyochon Chicken, announced on the 23rd that it has acquired the agency rights for the Japanese eel rice specialty chain "Unagi no Naruse," which has nearly 400 branches, as well as the Taiwanese Hong Kong-style dining brands "Mei Li Hong Kong Tea Cafe" and "KEN Xiang Modern Chinese Cuisine." This brings the total number of brands under Wang Zuo to 12. (Editor: Lin Chia-han) 1150624

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