Heavy Selling Pressure on Blue Chips Drags Taiwan Stocks Down 379 Points, Losing Monthly Line

(CNA) Taipei, July 9 - The Taiwan stock market experienced range-bound consolidation today, briefly breaking through the resistance of the monthly line and surpassing the 46,000-point mark, but lacked buying interest. In the final trading session, TSMC's stock price encountered selling pressure, closing at the day's low of NT$2,415, down NT$50. The index ultimately fell 379.80 points to close at 45,354.61, with a transaction value of approximately NT$944.341 billion.

Among the four major blue-chip stocks, TSMC closed down NT$50, or 2.03%, at NT$2,415. MediaTek fell NT$70, or 1.75%, to NT$3,925. Delta Electronics saw a slight decrease of NT$5, or 0.27%, closing at NT$1,880. Hon Hai closed flat at NT$237.5.

Notably, the OTC (over-the-counter) index, primarily composed of small and mid-cap stocks, remained above the flat line throughout the trading day, closing up 3.6 points, or 0.85%, at 424.99 points, showing relative resilience.

The passive component sector performed brightly today. Yageo, a leading company, rose more than 6% at its peak during the session, but its gains narrowed by the close, ending at NT$900, up NT$9, or 1.01%. Other companies such as Walsin Technology, Lier-Tech, and Holy Stone also saw their closing stock prices rise by more than half a trading limit.

In the silicon wafer sector, GlobalWafers' stock price surged to the daily limit of NT$1,350, setting a new closing record high. Etron Technology's closing stock price also rose by 7.81%.

Tseng Yen-yu, Vice President of the Research Department at Capital Investment Trust, analyzed that the Taiwan stock market's trend is influenced by the US stock market. Recently, US tech stocks have been following South Korean stocks. South Korea's two major blue-chip stocks, Samsung Electronics and SK Hynix, have seen their stock prices soar this year due to memory chip shortages and price increases. Coupled with investor chasing of gains, this has led to excessive leverage, resulting in sharp fluctuations and adjustments recently, which in turn affects the trend of US tech stocks and Taiwan stocks.

Tseng Yen-yu observed that the fundamentals of the AI industry have not shown significant turning points, and the trend remains optimistic. However, many AI individual stocks have risen too much and are facing profit-taking selling pressure. Additionally, the market needs consolidation. It is estimated that the Taiwan stock market will maintain range-bound consolidation in the short term. The short-term outlook will depend on the performance of SK Hynix's American Depositary Receipts (ADRs) after their listing in the US on the 10th. (Editor: Yang Kai-hsiang) 1150709

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