TSMC ADR Falls Over 4%, Investment Firm: Taiwan Stocks to Fluctuate Short-Term, Focus on Earnings Calls

(CNA, reporter Chiang Ming-yan, Taipei, July 8) US stocks closed lower, with AI tech stocks weakening, leading TSMC ADR to fall over 4%. The Taiwan Stock Exchange Capitalization Weighted Stock Index (TAIEX) closed down 1077.28 points on the 7th, marking the 8th largest single-day drop in history. Investment firms analyze that the TAIEX has fallen below its monthly moving average, with downside support yet to be observed. The index is expected to fluctuate between 45,000 and 47,500 points this week, with attention on earnings calls from heavyweight companies.

Investor concerns over the uncertain future of the Artificial Intelligence (AI) industry have dragged down tech stock performance, leading Wall Street to close in the red. The Dow Jones Industrial Average fell 130.76 points, or 0.25%; the S&P 500 index dropped 33.58 points, or 0.45%; the Nasdaq Composite Index plunged 302.47 points, or 1.16%; and the Philadelphia Semiconductor Index plummeted 599.63 points, or 4.65%.

Tech stocks weakened, with Intel, Micron, ASML, and AMD among those declining. TSMC ADR (American Depositary Receipt) fell 4.25%, UMC ADR dropped 7.74%, and ASE ADR fell approximately 8.47%.

The TAIEX futures traded on the overnight market closed at 45,207 points, down 488 points, a decline of 1.07%.

The TAIEX closed at 45,479.11 points on the 7th, down 1077.28 points, the 8th largest single-day drop in history. It fell below the 10-day moving average of 46,057 points and the monthly moving average of 45,710 points.

Institutional investors collectively sold NT$94.691 billion worth of stocks. Proprietary traders sold NT$48.733 billion, investment trusts bought NT$8.773 billion, and foreign and mainland Chinese investors sold NT$54.731 billion.

Investment firms analyze that the TAIEX has fallen below its monthly moving average, with downside support yet to be observed. Short-term fluctuations are not ruled out. TSMC's earnings call is scheduled for the 16th, while Largan Precision will hold its earnings call on the 9th. The market is also paying attention to the content of earnings calls from heavyweight companies. If positive operational outlooks are released, it could boost market confidence and lead to a recovery in investor buying. The index is expected to trade in the range of 45,000 to 47,500 points this week. (Editor: Yang Lan-hsuan) 1150708

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