Taiwan Stock Market: Heavyweights Weak, High-Priced Stocks Shine – Down 214 Points, Quarterly Line Held, Four-Day Rally Ends

On August 6, the Taiwan stock market opened lower and continued to decline amid weakness in electronic and financial heavyweight stocks, dropping over 600 points early in the session to hover around the 44,000 level. Sectors such as steel, heat dissipation, high-priced stocks, and small-to-mid-sized companies with strong July revenue outperformed. As heavyweight stocks stabilized their losses, the market recovered some ground, closing down 214.9 points (0.48%) at 44,396.7, maintaining support at the quarterly moving average but ending a four-day consecutive rise in daily candlesticks. Trading volume decreased from the previous day to NT$940.391 billion.

In the Over-the-Counter (OTC) market, performance outpaced the main exchange today, rising 1.99% and marking five consecutive days of gains on the daily chart.

Among heavyweight stocks, TSMC (2330-TW) opened lower and trended downward, finishing the session down 1.66% (NT$40) at NT$2,365 after suffering a last-minute sell-off of 4,217 lots. MediaTek (2454-TW) dropped 2%, falling below the NT$4,000 mark. Hon Hai (2317-TW), buoyed by strong July revenue, rose 2.32%. Innolux (3481-TW) gained 4.6%, and Delta Electronics (2308-TW) advanced 1.82%.

Financial heavyweights showed lackluster performance today. Insurance leaders Fubon Financial (2882-TW) and Cathay Financial (2881-TW) fell 2–3%, while Kaizen Financial (2883-TW) and Taishin & Shin Kong Financial (2887-TW) dropped over 3%, and Yuanta Financial (2885-TW) declined 2.3%.

Steel stocks benefited from signs of market stabilization. Despite global steel markets entering a correction phase in Q3, recent emergence of four bottoming signals has increased optimism for an economic rebound in Q4. This drove Donghe Steel (2006-TW) to hit its daily limit up, Dacheng Steel (2027-TW) up over 4%, Hsin Chong Steel (2032-TW) up over 8%, and Shin Kong Steel (2031-TW) nearly hitting the upper limit.

The heat dissipation sector gained momentum from ongoing AI server upgrades and rising demand for liquid cooling solutions driven by high-power chips. Today, capital inflows sparked rallies across the sector, with Funshine (6805-TW), Sunon (2421-TW), Microway (6831-TW), and Twinhead (3324-TW) all hitting the daily trading limit. Advantech (3017-TW) surged over 7%, while JSC (3653-TW) and Taisol (3338-TW) rose more than 2.5%.

Among high-priced stocks, besides King Yuan Electronic (5274-TW), the 'king of ten-thousand-dollar stocks,' which rose 4.56%, Chaohu (2059-TW), the 'queen of stocks,' jumped 6.65% to close at NT$10,100, becoming the third stock in the Taiwan market to surpass the NT$10,000 threshold. The number of thousand-dollar stocks rose to 49 today, with nine hitting the daily limit during trading.

Analysts noted that today’s market correction came with shrinking volume, primarily due to pressure on heavyweight stocks. With declining volume and falling prices leading to significant short-term positive deviation, investors should monitor the latest July revenue figures, semi-annual financial reports, and recent earnings conference calls. Today’s sector movements mostly reflected rebounds in previously oversold groups. Investors should also watch foreign institutional positioning in futures short contracts.