Taiwan Stocks Rise 255 Points, Challenging Monthly Line; Market Observes, Turnover Hits Lowest Since April 29

Taipei, July 8 (CNA) Taiwan's stock market closed higher today, gaining 255.3 points to reach 45734.41, driven by a late surge in TSMC and strong performance in the drone sector. The index continues to challenge the monthly line resistance at 45762 points. However, following a sharp 1000-point drop on Tuesday, market sentiment was cautious today with limited buying interest, and turnover fell below NT$1 trillion, marking the lowest volume since April 29.

Concerns over the uncertain future of the Artificial Intelligence (AI) industry led to investor apprehension, and US stocks closed lower. The Taiwan stock market opened higher today, reaching 45837.12 points in early trading, reclaiming the monthly line and gaining 358 points. However, selling pressure emerged later, causing the index to turn negative and fluctuate.

Taiwan's weighted stock index closed at 45734.41 points, up 255.3 points or 0.56%. Turnover was NT$958.346 billion, the lowest since April 29. Sector performance showed electronics stocks up 0.44%, financial stocks up 1.56%, and plastics stocks surging 6.01%. The OTC index rose slightly by 0.46%.

Observing the performance of major stocks, TSMC saw a significant jump in late trading, closing at NT$2465, up NT$25 or over 1%. Yageo turned negative, falling 1.55% and dropping below the NT$900 mark. MediaTek and Delta Electronics closed slightly lower, while UMC surged nearly 7% today after its ex-dividend trading.

PCB sector stocks rebounded today, with the three major substrate manufacturers, Kingboard Chemical Holdings, Nanya Technology, and Unimicron, seeing gains of 7% and 2.74% respectively. The three major CCL manufacturers, Nan Ya Plastics, Lotte Chemical, and TAIYO NIPPON SANSO, all closed higher.

Drone concept stocks continued to be a hot topic, with Evergreen Aviation Technologies, E-ONE, Advantech, and TAIWAN SHOCK INDUSTRIES all hitting the daily limit, while Han-Xiang Aviation Industry Corporation rose over 3%.

Looking at high-priced stocks, the stock king, Realtek Semiconductor, fell over 3%. Coolermaster Technology and Winbond Electronics fell 2% and 3.99% respectively. Lottes Chemical surged to the daily limit, breaking the NT$2000 mark. As Jun Hwa lost its NT$1000 status, the number of NT$1000 stocks in Taiwan fell to 49.

Huang Kuo-wei, Deputy General Manager of Mega International Investment Trust, told CNA today that after two consecutive days of pullback, the Taiwan stock market saw buying support at lower levels during trading today, with the index generally fluctuating around the flat line. He stated that this can only be considered a pause in the decline, not yet a rebound, and the index has not yet reclaimed the monthly line.

Regarding the turnover falling below NT$1 trillion, Huang Kuo-wei pointed out that this indicates a strong wait-and-see attitude in the market. Currently, the market's themes are almost exclusively financial reports. With upcoming investor conferences from Nanya Technology and TSMC, the market generally expects strong results. Therefore, before these conferences, capital tends to remain on the sidelines, and stock prices lack room for significant movement.

Huang Kuo-wei added that the key observation going forward will be whether positive financial reports can further drive stock prices higher after the investor conferences. If strong financial reports fail to stimulate stock prices, it would be a noteworthy warning sign, suggesting that the market may have already priced in the good news, or even that a "good news out, sell the news" scenario could occur. (Editor: Chang Liang-chih) 1150708

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