Post-Market Analysis 08/07: Trump's Remarks and Pre-NFP Jitters Cause Taiwan Stocks to Consolidate at High Levels; Strong Performers Include HIWIN, Win Gain, and Taimex

I. Market Analysis

Today (8/7), Taiwan's stock market was affected by uncertainty surrounding former President Trump's policy statements and investor caution ahead of the U.S. non-farm payroll report. The weighted index opened higher, peaking at 44,827.13 points, but retreated sharply due to profit-taking. It closed down 170.79 points (-0.38%) at 44,225.91, with turnover reaching NT$844.44 billion. The index successfully held above both the monthly and quarterly moving averages. Foreign institutional investors led a broad sell-off, with total foreign, investment trust, and proprietary trading selling amounting to NT$58.224 billion across all markets (NT$45.644 billion in the main exchange). The OTC index followed small-to-mid cap tech stocks lower, closing down 7.18 points (-1.83%) at 384.19, with turnover of NT$206.648 billion. Defensive funds rotated into traditional industries and biotech, while passive components and silicon wafers faced downward pressure.

II. Strong Sectors

• APIs & Biotech (Defensive Demand): Benefiting from tight global supply of specialty active pharmaceutical ingredients (APIs) and strong CDMO order wins, China Chemical & Pharmaceutical (1762-TW) surged to the daily limit at NT$35.75, Sunrise Pharma (4119-TW) jumped +6.06% to NT$51.60, while Sunline (1789-TW) and TTY (4105-TW) remained resilient.

• Flat Steel & Iron & Steel (Infrastructure Orders): With international steel prices bottoming out and rebounding, supported by rising domestic public works and expansion projects, Shin-Kong Steel (2031-TW) hit the upper limit at NT$45.00, Chung Hung Steel (2014-TW) rose +2.92% to NT$17.65, and both Donghwa Steel (2006-TW) and China Steel (2002-TW) advanced together.

• Bearings, Linear Guides & Robotics (Automation Expo): With the Taipei International Automation Show set to launch on August 19, automation and humanoid robotics themes gained traction. HIWIN Technologies (2049-TW) soared +6.91% to NT$387.00, Global Transmission (4540-TW) surged +7.53% to NT$60.00, and Zhida (1597-TW) saw high-level share rotation.

III. Weak Sectors

• MLCCs & Passive Components (Profit Taking): Institutional investors took profits at elevated levels as end-market demand softened. Hoshen Tang (3026-TW) plunged -9.78% to NT$535.00, Yageo (2327-TW) dropped -5.26% to NT$540.00, and Walsin Technology (2492-TW) corrected -2.14%.

• Silicon Wafers & Semiconductors (Inventory Digestion): Slow digestion of long-term customer contracts pressured spot prices. Hon Hai Precision (6182-TW) fell -6.48% to NT$101.00, Giga Solar (3016-TW) declined -5.31%, losing its NT$100 threshold, UMC (2303-TW) dropped -4.53% to NT$116.00, and Macronix (2337-TW) corrected -5.81%.

IV. Key Investment Picks for Institutional Investors

Refer to the original text for our curated stock selection strategy.

Disclaimer: This information is for reference only and does not constitute investment advice. Investors should make independent judgments and bear their own risks.