TAIPEI (Taiwan News) — The Taiwan stock market started the day in the red on Tuesday (Oct. 29) and continued its downward trend.
The decline in the Taiwan Semiconductor Manufacturing Co. (TSMC) American Depositary Receipts (ADRs) by over 4% was the primary driver of the Taiwan Stock Exchange Capitalization Weighted Stock Index's (TAIEX) downturn. The TAIEX reached a low point of 22,711, before recovering slightly towards the end of the trading session, per CNA.
ADRs are certificates issued by a US bank that represent shares of a foreign company, known as American Depositary Shares (ADS). This allows US investors to buy shares in international companies that might not be directly accessible to them, per Investopedia.
The TAIEX ended the day down 271.48 points at 22,926.59, down 271.48 points, pushing the index below its monthly average of around 22,975. Total trading volume reached NT$341.8 billion.
While the broader market declined, the machine tool and stay-at-home economy sectors showed resilience. Anderson Industrial hit its daily limit, up 20.9%, while Kao Fong Machinery gained 2.55%.
As the important e-commerce shopping period of Nov. 11 draws near, stocks related to the stay-at-home economy have surged. PChome reached its daily limit, closing at NT$46.35, following Uni-President's announcement of becoming a major shareholder last week.
Taiwan Pelican Express reached its daily limit, closing at NT$45.45. Gaming companies Wayi International and MacroWell OMG also hit their daily limits, ending the day at NT$193 and NT$124.5, respectively.
The electronics and finance sectors experienced declines of 1.25% and 0.6%, respectively. The Taipei Exchange (TPEx) index, which tracks smaller companies, fell by 0.98%.
TSMC, Foxconn, and other tech giants experienced declines. However, TSMC limited its losses, closing the day at NT$1040, a decrease of NT$10.
Foxconn’s stock price fell more than 2%. MediaTek ended the day at NT$1300, down NT$35.
Analysts said uncertainty surrounding the US election is casting a shadow over the Taiwan stock market. However, they anticipated the market would eventually return to its fundamental values.
Investors are advised to closely monitor the earnings reports of major tech companies this week. Analysts have identified 22,000 points as a potential support level for the Taiwan stock market.
