TAIPEI (Taiwan News) — Taiwan’s stock market opened higher on Tuesday despite the US proposal on balancing semiconductor manufacturing with Taiwan.
The Taiwan Capitalization Weighted Stock Index (TAIEX) gained 240.22 points to close at 25,820.54, with turnover totaling NT$429 billion (US$14 billion). Late-session trading in TSMC involved more than 10,000 lots, or 10 million shares, sold, slightly narrowing the market’s overall gains, according to CNA and CTEE.
TSMC closed up 0.38% at NT$1,305, though post-market activity saw 11 lots traded at the day’s limit-up price of NT$1,430, marking a record high. Analysts note that recent post-market trades may be laying the groundwork for future price movements, according to CTEE.
MediaTek rose 0.38% to NT$1,315, and Delta Electronics increased 0.71% to NT$854. Foxconn declined 1.59% to NT$216.
In the cooling sector, Jentech Precision Industrial introduced its next-generation cooling solution, reaching the daily limit of 9.79% at NT$2,410. Other cooling-related companies, including Delta Electronics, Asia Vital Components, Auras Technology, and Sunon, also recorded gains.
Memory stocks continued to perform well, with Unifosa, Adata, Silicon Power, and Phison Electronics reaching their daily limit-ups. Winbond Electronics advanced 8.44% on trading volume of roughly 280,000 lots, leading individual stock activity.
Taiwan-based server original design manufacturers also saw demand influenced by Nvidia’s performance, which closed near record highs. Wistron reached its daily limit, hitting a more than two-year high, with over 30,000 lots queued for purchase late in the session.
Analyst Hsieh Chen-yen (謝晨彥) observed that internal capital flows in Taiwan’s stock market reflect a noticeable sense of investor urgency. From May to August, active trading accounts increased by over 900,000, nearly a 30% rise.
During the same period, securities transfer balances grew by more than NT$500 billion, and monthly margin balances rose over NT$20 billion. Retail investor sentiment became increasingly bullish, which Hsieh cautioned can indicate that the market is approaching a relative high.
Institutional investors may adjust positions during such periods, Hsieh said, potentially causing short-term corrections. While retail activity is not the direct cause of downturns, its timing often coincides with market turning points, warranting close attention.
Hsieh advises investors to consider gradually reducing positions at elevated levels to avoid chasing prices. Current fluctuations are seen as normal, helping temper retail enthusiasm and supporting more sustainable market momentum.
Looking ahead, September revenue reports, expected in early October, are expected to serve as key indicators for potential capital return, Hsieh said.
This information is not intended as personalized financial advice. Investors should conduct their own research before making investment decisions.
