Taiwan Stock Market Opens: Dropped Nearly 600 Points, Testing 20-Day MA and 44,000 Level; Optical Communication and Thermal Small-Caps in Focus

Following declines in the U.S. Nasdaq and Philadelphia Semiconductor Index, Taiwan's stock market failed to sustain yesterday's upward momentum today (6). The market opened at 44,487.94, down 123.66 points. Due to weakness in major electronics bellwethers such as TSMC and ASE Holding, the index briefly fell nearly 600 points, reaching a low of 44,024—breaking below the 20-day moving average and retreating under the 44,000 threshold. Meanwhile, funds shifted toward small- and mid-cap stocks, with the GreTai Index initially opening lower but later turning positive, rising over 2 points or 0.5%. Estimated morning trading volume stood at TWD 1.07 trillion.

Heavyweight stocks were broadly weaker today. TSMC (2330-TW) declined by TWD 30, or about 3.5%, to TWD 2,405. MediaTek (2454-TW) dropped TWD 40, or around 1%, to TWD 3,960. ASE Holding (3711-TW) fell approximately 2%, while Hon Hai (2317-TW) edged slightly higher. Delta Electronics (2308-TW) managed to hold above the flat line.

Optical communication remained a focal point. Lianyao (3081-TW) hit its daily trading limit, IET-KY (4971-TW) rose about 8%, Wooriway (3163-TW) gained approximately 2%, and Shangchuan (31363-TW) advanced about 1%.

Twinhan's strong July earnings report boosted sentiment in the thermal solutions sector. Twinhan (3324-TW) surged to its daily limit, Highlink (8996-TW) climbed about 6%, Chicony Power (3017-TW) rose roughly 3%, and Jianche (3653-TW) traded slightly above the flat line.

With steel prices stabilizing and economic conditions gradually improving, steel-related stocks strengthened. Hsin Kuang Steel (2032-TW) and First Copper (2009-TW) each gained about 6%, NFG Steel (2031-TW) and Haiguang (2038-TW) rose about 4%, while Dong He Steel (2006-TW) and Tat Cheng Steel (2027-TW) increased approximately 3%.