TAIPEI (Taiwan News) — The TAIEX, the Taiwan Stock Exchange's (TWSE) weighted index, on Friday (April 19) recorded the largest single-day drop in history, ending its four-week winning streak.
Disappointing news from a Taiwan Semiconductor Manufacturing Co. (TSMC) investor conference combined with escalating tensions in the Middle East, caused the TAIEX to experience a midday plunge of over 1,000 points, marking the second-largest intraday drop in history, reported CNA. Although the downward trend later eased, the market closed with a significant decline of 774.08 points at 19,527.12 points, setting a new record for the largest single-day drop.
The market on Friday dropped by 3.81% on a turnover of NT$704.79 billion (US$21.66 billion). This stopped the TAIEX's four-week winning streak, decreasing by 1,209.45 points, surpassing the previous single-day record drop of 696.97 points set on Jan. 30, 2020,
At an investor conference on Thursday (April 18), TSMC CEO C. C. Wei (魏哲家) revised downward the outlook for global semiconductor market revenues in 2024 from over 10% growth, to remain steady at 10%, reported China Times. Wei estimated growth of global wafer foundry industry output would be around 14-19%, lower than the original estimate of 20%.
Due to these negative factors, TSMC's American depositary receipts (ADRs) fell by 4.86%, prompting the TAIEX to dip below the 20,000-point mark when trading opened on Friday. Selling pressure led to the TAIEX hitting a low of 19291.88 points, plummeting by 1,009.32 points, marking the second-largest intraday drop in the index's history.
The largest intraday drop was May 12, 2021, when escalating domestic pandemic concerns triggered panic selling, resulting in a drop of 1417.86 points.
Looking at the trend of listed stocks, electronics stocks on the TAIEX dropped by 4.95%, financial stocks by 1.67%, and semiconductor stocks plummeted by 6.13%. Only transportation, construction, and green energy stocks saw gains.
A total of 1,587 listed and OTC stocks fell Friday. The number of companies that fell to their daily limit was five, less than the 22 that rose to their daily cap.
Regarding individual stock trends, TSMC's investor conference failure led to a significant drop in stock price, breaking below short and medium-term moving averages, closing down by NT$54, or 6.72%, at NT$750. Major weighted stocks saw significant declines, with Hon Hai (Foxconn), Delta Electronics, and MediaTek falling by over 3%.
