Taiwan Stock Market: Weak Rally in Low-Volume Session, Falls 461 Points Below 45,000 and Key Moving Averages

Taiwan's stock market opened higher on Tuesday, April 24, but quickly turned negative amid volatile trading. After gaining over 130 points in early trade, the index reversed course due to negative international news and a sharp selloff in regional Asian markets. Only select sectors—silicon wafers, DRAM memory, and shipping stocks—performed positively. Heavy institutional selling in major electronics stocks during the final session pushed the market lower, closing down 461.97 points (1.02%) at 44,762.32. The benchmark index lost the 45,000-point level and broke below both the 5-day and 100-day moving averages. Trading volume shrank further to NT$629.4 billion, the lowest since April 7.

The over-the-counter (OTC) market also opened strong but closed down 0.3%, outperforming the main exchange despite mixed performance among small- and mid-cap stocks.

Among large-cap stocks, TSMC (2330-TW) opened lower and continued to decline, closing at NT$2,375—a 1.45% drop—after a final-block sell-off of 2,060 lots. Hon Hai (2317-TW) reversed from early gains, hit by a late sell order of 3,122 lots, falling 0.81%. MediaTek (2454-TW) declined 0.66%. In contrast, United Microelectronics (2303-TW) surged 6% on news of its collaboration with Intel and plans to introduce advanced processes at its U.S. wafer plant. Lite-On (2301-TW), benefiting from BBU and CPO-related themes, rallied to the daily limit.

The silicon wafer sector continued to gain momentum from a recent 10% price hike—the first in three years. GlobalWafers (6488-TW) jumped 7%, TSMC Subsidiary Taiwan Semiconductor (3532-TW) and United Materials (2434-TW) hit the upper limit, while Asia Silicon (2301-TW) rose 3.77%. Jmatek (3016-TW) and Episil (3707-TW) also closed higher.

Shipping stocks gained on renewed Middle East tensions, boosting expectations for a strong traditional peak season in the second half of 2026 and higher freight rates. Yang Ming (2609-TW) rose 0.78%, Wan Hai (2615-TW) closed flat, and Taiwan Express Holding (2636-TW) gained 1.77%.

DRAM memory stocks continued to benefit from supply shortages and rising prices. ADATA (3260-TW) surged 3.79%, while Powerchip (6770-TW), Phison (8299-TW), Top Victory (3260-TW), and Lontium (3135-TW) gained 2–3%.

Analysts noted that today’s market was driven by low-valuation and thematic stocks amid weak overall volume, increasing the risk of isolated movements. With volume contraction persisting, investors should watch for a potential 'second bottom' in the weighted index. Elevated U.S. long-term bond yields have raised concerns about a possible U.S. debt crisis. Market attention now turns to the upcoming speech by the Federal Reserve Chair. Key sectors to monitor include AI infrastructure, memory, silicon photonics, and shipping.