〈Taiwan Stock Market Forecasts〉Foreign Investors' Significant Purchases Propel Taiwan's Stock Market to New Heights, Eyes on TSMC's Next Move
In the financial heartbeat of Taiwan on the 20th of June, the local stock market witnessed a stellar rise, thanks primarily to the prominent triad of heavyweight stocks, elevating the TAIEX to breach the 23,000-point barrier. The day saw it peak at 23,275.3 points, setting yet another fresh high before finally settling at 23,209.54 points, which represented a significant gain of 452.11 points or nearly 2%. The trading volume for the day escalated to NT$603.345 billion with the trio of institutional investors combined net buying reaching NT$49.506 billion, of which foreign investors alone purchased stocks worth NT$48.547 billion, marking the seventh-largest foreign net buying in history. This massive buying surged particularly in several high-dividend ETFs, accumulating over 190,000 transactions.
The surge in Taiwan's stock market has coincided with the global buzz around artificial intelligence (AI). TSMC, or Taiwan Semiconductor Manufacturing Co. (2330-TW)(TSM-US), a global leader in advanced semiconductor process technology and packaging, has been at the forefront of this trend. With numerous large orders for AI chips, their stock price has soared from NT$593 at the end of last year to NT$981 as of the recent close, netting stockholders a whopping gain of NT$388,000 per share, and a striking 65% increase in stock price. The market cap of TSMC swelled by more than NT$10 trillion, reaching over NT$25 trillion.
Amidst the ongoing financial euphoria, Capital Securities hosted an investment outlook seminar for the latter half of 2024, estimating that the Taiwan stock index could fluctuate between 21,000 to 23,500 points for the third quarter. However, given the rapid ascent in stocks recently, particularly with TSMC at the helm, the forecast included a potential peak of 25,000 points for the season, should TSMC make a significant move. The financial group emphasized Taiwan as an AI hub, which continues to fuel the local equity markets with robust capital flows.
On the front of high-dividend returns, Yuanta High Dividend ETF (0056-TW) continued its impressive streak of distributing dividends for the 14th consecutive year and maintaining a 100% dividend payment record. Esteemed by numerous long-term investors for asset allocation, the fund's scale officially surpassed the NT$300 billion mark on the 19th, resetting its own milestone and firmly positioning itself as the market leader in Taiwan's ETF sector with the second-largest scale following Yuanta Taiwan's Top 50 ETF (0050-TW).
Furthermore, the local steel giant China Steel (2002-TW) embraced the economic dimensions of environmental concerns at its shareholders' meeting. The CEO underlined the 'triple carbon' challenge as an economic, rather than a mere environmental issue, ensuing that value creation for clients would justify a premium price despite increased carbon costs.
From the investment perspective, market research agency TrendForce highlighted disparities among foundries. While TSMC's advanced processes were fully operational, driving speculation about an impending price hike, other local manufacturers maintained operating rates between 70 to 80%. Chinese manufacturers, however, saw a prerecovery in order volumes, pushing them to raise process prices sooner.
To circle back, the unprecedented surge in TSMC's stock price alongside strategic asset allocation shifts in Taiwan's ETFs delineated a captivating tapestry of robust financial performance and investment opportunities. As an astute reflection of Taiwan's pivotal role in global tech advancements, particularly in AI, the stock market's thriving dynamics continue to attract substantial foreign investments, spotlighting Taiwan as a focal point in the global financial narrative. With an eye on future trends, markets, and potential shifts, Taiwan's stock scenario could see new accolades, potentially topping even the most optimistic forecasts.
The surge in Taiwan's stock market has coincided with the global buzz around artificial intelligence (AI). TSMC, or Taiwan Semiconductor Manufacturing Co. (2330-TW)(TSM-US), a global leader in advanced semiconductor process technology and packaging, has been at the forefront of this trend. With numerous large orders for AI chips, their stock price has soared from NT$593 at the end of last year to NT$981 as of the recent close, netting stockholders a whopping gain of NT$388,000 per share, and a striking 65% increase in stock price. The market cap of TSMC swelled by more than NT$10 trillion, reaching over NT$25 trillion.
Amidst the ongoing financial euphoria, Capital Securities hosted an investment outlook seminar for the latter half of 2024, estimating that the Taiwan stock index could fluctuate between 21,000 to 23,500 points for the third quarter. However, given the rapid ascent in stocks recently, particularly with TSMC at the helm, the forecast included a potential peak of 25,000 points for the season, should TSMC make a significant move. The financial group emphasized Taiwan as an AI hub, which continues to fuel the local equity markets with robust capital flows.
On the front of high-dividend returns, Yuanta High Dividend ETF (0056-TW) continued its impressive streak of distributing dividends for the 14th consecutive year and maintaining a 100% dividend payment record. Esteemed by numerous long-term investors for asset allocation, the fund's scale officially surpassed the NT$300 billion mark on the 19th, resetting its own milestone and firmly positioning itself as the market leader in Taiwan's ETF sector with the second-largest scale following Yuanta Taiwan's Top 50 ETF (0050-TW).
Furthermore, the local steel giant China Steel (2002-TW) embraced the economic dimensions of environmental concerns at its shareholders' meeting. The CEO underlined the 'triple carbon' challenge as an economic, rather than a mere environmental issue, ensuing that value creation for clients would justify a premium price despite increased carbon costs.
From the investment perspective, market research agency TrendForce highlighted disparities among foundries. While TSMC's advanced processes were fully operational, driving speculation about an impending price hike, other local manufacturers maintained operating rates between 70 to 80%. Chinese manufacturers, however, saw a prerecovery in order volumes, pushing them to raise process prices sooner.
To circle back, the unprecedented surge in TSMC's stock price alongside strategic asset allocation shifts in Taiwan's ETFs delineated a captivating tapestry of robust financial performance and investment opportunities. As an astute reflection of Taiwan's pivotal role in global tech advancements, particularly in AI, the stock market's thriving dynamics continue to attract substantial foreign investments, spotlighting Taiwan as a focal point in the global financial narrative. With an eye on future trends, markets, and potential shifts, Taiwan's stock scenario could see new accolades, potentially topping even the most optimistic forecasts.
Last edited at：2024/12/16
#ETF#TSMC#0050-tw#China Steel Corporation