TAIPEI (Taiwan News) — Taiwan’s stock market closed slightly lower on Friday as investors turned cautious ahead of the Aug. 1 implementation of US tariffs and the upcoming corporate earnings season.
The Taiwan Stock Exchange Capitalization Weighted Stock Index, or TAIEX, fell 9.35 points to close at 23,364.38, with turnover totaling NT$292 billion (US$10 billion). The TAIEX lost 18.75 points for the week, compared to a 632.10-point rise the previous week, according to CNA and CTEE.
TSMC and MediaTek closed flat at NT$1,145 and NT$1,430, respectively. Foxconn saw a slight increase of NT$0.5, closing at NT$174.5.
In the paper manufacturing sector, Longchen Paper & Packaging announced a share buyback program and an asset sale, pushing its shares to the daily limit, closing up 9.58% at NT$10.75. Share buybacks involve companies repurchasing their own shares, reducing the number of shares available on the market, according to Oanda.
The steel sector showed some gains, led by Ta Chen Stainless Pipe, which benefited from the US increasing steel and aluminum import tariffs to 50%. Ta Chen’s shares gained 4.49% to NT$37.25, with trading volume rising to five times that of the previous day.
Chung Hung Steel and Sinkang Industries also posted modest gains of 3.83% and 3.40%, respectively. The bulk shipping sector also recorded gains.
Chinese Maritime Transport hit the daily trading limit, while Shih Wei Navigation rose by over 8%. Other shipping companies, including Sincere Navigation, Wisdom Marine Lines, U-Ming Marine Transport, and Franbo Lines also advanced.
Cathay Securities Investment Consulting manager Tsai Ming-han (蔡明翰) said that US tariffs remain a key factor affecting Taiwan’s stock market. Although some negative effects have eased, uncertainty continues to influence market sentiment.
Tsai noted that Taiwan and Japan’s markets have lagged behind South Korea and Western counterparts this year. He pointed to Japan’s recent market gains following a tariff reduction deal with the US, suggesting that greater clarity on Taiwan’s tariff outlook could yield a comparable effect.
For investment strategy, institutional analysts advise focusing on artificial intelligence-related stocks that offer growth potential and are less affected by economic fluctuations, as these remain a key market theme. They also recommend monitoring sectors such as the TSMC supply chain, printed circuit boards, bulk shipping, biotechnology and healthcare, machine tools and robotics, and companies poised to benefit from a stronger Taiwan dollar.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.
