TAIPEI (Taiwan News) — Taiwan’s stock market posted its largest single-week foreign inflow last week, with foreign net buying reaching NT$158.7 billion (US$5.2 billion).
The Taiwan Capitalization Weighted Stock Index (TAIEX) rose 258.93 points on Friday to close at 25,474.64, marking the fifth consecutive day of record closing highs. Over the week, the index gained nearly 980 points, extending a three-week run, according to CNA.
PGIM High Growth Fund manager Liao Ping-kun (廖炳焜) attributed the market’s momentum to stronger-than-expected August revenue from listed companies.
Total revenue for the month surpassed NT$4.15 trillion. The figure marks the strongest August on record and the second-highest monthly revenue overall, with 74 companies achieving record sales.
Investor sentiment was further boosted by high-profile events such as Apple’s product launch and the Semicon exhibition, as well as expectations of a potential US Federal Reserve rate cut. Strong performance in US stocks, particularly technology shares, also supported Taiwan’s rally.
Artificial intelligence server and component-related sectors led gains among domestic technology stocks, reflecting confidence in continued AI-driven growth, supported by Oracle’s optimistic earnings forecast.
Despite the market’s bullish momentum, experts cautioned that concentrated foreign investment in AI-related stocks may create short-term imbalances. President Securities Chair Li Fang-kuo (黎方國) said foreign investors’ focus on AI shares has caused uneven gains, with the sector outperforming while other industries lag.
Li added that a potential US-Taiwan agreement to lower tariffs could benefit traditional industries more than the electronics sector, which already enjoys broad exemptions. Such a shift could redirect capital from high-priced electronics stocks to lower-valued traditional industries, potentially weighing on electronics shares.
He also pointed out that many Taiwanese stocks are trading at extremely high prices, well above what the companies are currently earning, making it difficult to assess their true value. Li added that the market may continue rising gradually unless a clear signal indicates a sudden downturn.
