Taiwan Stocks End Higher After Late Rally Led by TSMC

Taiwan's stock market fluctuated on the 23rd, briefly surpassing 45,000 points in early trading but later fell due to short-term selling pressure, with the index turning from red to black, dropping more than 470 points. Only the plastics, heat dissipation, and optical communication sectors performed relatively well. The decline narrowed as electronic heavyweight stocks stabilized, and in the final session, a large order from TSMC pushed the market up by 25.03 points or 0.06%, closing at 44,850.81 points. The trading volume was 8,925.15 billion yuan, slightly lower than the previous day. The OTC market index also opened high and closed low, ending down 0.78%, performing worse than the main market.

Among the heavyweight stocks, TSMC (2330-TW) opened low and closed high, rising 0.21% after a large order of 5,081 units in the final session. Hon Hai (2317-TW) also saw a large order of 5,361 units in the final session, rising 2.39%. MediaTek (2454-TW) rose 0.65%, and ProLiant-KY (3665-TW) benefited from strong AI server shipments, with second-quarter and June revenue hitting record highs, surging 8.04%. Pegatron (2324-TW) rose 1.52%, and Quanta Computer (2382-TW) rose 2.13%.

In the plastics sector, rising oil prices due to escalating tensions in the Middle East and Trump's remarks boosted the plastics group. Formosa Chemicals (6505-TW) hit the limit up, and Taiwan Epoxy Resin (1309-TW) hit half the limit up. Formosa Plastics (1301-TW) rose 4%, while Formosa Petrochemical (1304-TW) and Formosa Chemicals (1326-TW) also rose more than 1.5%.

In the optical communication sector, NVIDIA's acquisition of the U.S. long-distance 'dark fiber' to build an autonomous AI fiber backbone network expanded its AI layout, igniting the heat of the optical communication theme. Lian Asia (3081-TW) hit the limit up for two consecutive days, and Hua Star Optronics (4979-TW) rose 7%. Poifai (3163-TW), Shang Chuan (3363-TW), and Lian Jun (3450-TW) rose 3-4%.

The 'Big Three' in heat dissipation benefited from expected growth momentum in the second half of the year and continued strong performance, with Chentech (3653-TW) rising 6%, Chingis (3017-TW) surging 7%, and Shuanghong rising 1.65%.

Analysts said this wave of the index is a correction from the high point, and in terms of capital, non-electronic groups such as plastics stocks benefited from rising oil prices and the positive factors of capital safe havens, but it is not advisable to chase high stock prices. Due to the rapid rotation of the group, investors should follow the performance and revenue performance, buy on dips, and adjust appropriately on highs to avoid chasing high stock prices.