Taiwan Stock Market: 1,000-Point Rebound Fizzles Out as Heavy Selling Pressure Returns, Falls Below 40,000 Points

Taiwan's stock market opened lower on May 30 due to deleveraging sell-offs from margin financing, with the index dipping to 39,404.65 points early in the session. During the morning, semiconductor stocks such as TSMC (2330-TW), UMC (2303-TW), and ABF and CCL-related stocks provided support, briefly pushing the index up by 1,116.24 points. However, strong selling pressure emerged in the late session, driving the main index below the 40,000-point threshold. The market closed at 39,933.30 points, down 105.88 points from the previous day, with a total trading value of TWD 1.1 trillion.

The OTC index, representing small and mid-cap stocks, showed even weaker performance, closing at 326.23 points—a sharp decline of 2.4%.

In the foreign exchange market, the New Taiwan dollar closed at NT$32.456 against the U.S. dollar at midday, depreciating by 9.0 cents, with transaction volume reaching USD 1.39 billion.

Regarding today's market trend, veteran securities analyst Jane Chien pointed out: "The market showed a rebound after a deep correction today, but due to messy margin financing positions, the index has been volatile. The OTC market has seen relatively larger declines, indicating ongoing pressure to unwind speculative positions in small-cap stocks. Combined with unfavorable technical indicators and weak volume trends, investors should remain cautious about short-term rebounds in weak stocks. We recommend adjusting weak holdings in the short term and refrain from aggressive buying until the market cleans up its positions and global markets stabilize."

The Taipei Stock Exchange opened at 40,048.94 points on May 30, with a low of 39,404.65 and a high of 41,155.42. Strong late-session selling pressure pushed the index below 40,000, closing at 39,933.30 points, down 105.88 points, with a trading value of TWD 1.1 trillion. The electronics sector declined 0.34%, accounting for 79% of total trading value, while financial stocks rose 1.49%, making up 2.7% of trading volume.

At closing, TSMC edged up TWD 5 (0.23%), but passive component stocks such as Yageo (2327-TW), Walsin Technology (2492-TW), and Holtek Semiconductor (3026-TW) locked at the daily limit down. Key heavyweight Quanta Computer (2382-TW) also closed at limit down, dragging down the overall electronics sector. However, electronic materials stocks, including CCL and IC substrate-related stocks, showed mixed results. Taiwan Union Technology (2383-TW) briefly hit the daily limit up during the session and closed up 5.24% at TWD 4,315.

IC substrate stocks showed divergent movements: Unimicron (3037-TW), which reported strong Q2 earnings, rose, as did Kinsus Interconnect Technology (3189-TW). However, Nanya PCB (8046-TW) closed down TWD 42 (4.78%) at TWD 837.