Highlights

The Taiwan stock market surged by 143 points on December 12, closing at 23,046 points and surpassing the 23,000-point mark. This was chiefly driven by TSMC (2330-TW) swiftly recovering its dividend loss, while Datong (2371-TW) and Delta Electronics (2308-TW) reported significant strategic initiatives. Meanwhile, sales and production predictions hint at future growth for these companies, alongside potential developments in the low-carbon cement market spearheaded by Asia Cement (1102-TW).

Sentiment Analysis

• The sentiment around the Taiwan stock market opening is generally positive, driven by key gains in significant shares like TSMC.
• There is an optimistic outlook on the potential growth of companies like Datong, thanks to increased orders and strategic expansion into international markets.
• TSMC's rapid dividend recovery has reinforced confidence in the market's stability.
• Investors are cautiously optimistic about low-carbon initiatives from companies like Asia Cement, which align with global sustainability trends.
• There is some concern about potential headwinds from regulatory constraints and market saturation, especially affecting sectors like real estate, where data shows a slowdown.

Article Text

On December 12, the Taiwan stock market witnessed a notable upswing, with a closing boost of 143 points, reaching a settlement of 23,046 points. This upswing restored the market above the critical threshold of 23,000 points, a confidence booster for investors. A significant catalyst in this development was TSMC (2330-TW), whose stocks rose due to a remarkable recovery from its recent dividend loss, reinforcing investor confidence in its market performance.

TSMC, a semiconductor titan, declared a dividend of NT$4 per share, with the reference price adjusted to NT$1040. However, it opened at NT$1060 and briefly peaked at NT$1065 during the day's trading, signaling robust investor confidence. This rapid recovery further elevated TSMC's market capitalization, now back to NT$27.6 trillion.

In parallel, other prominent players also made waves with strategic announcements. Datong (2371-TW) held an investors' briefing where it revealed having significant orders amounting to NT$15 billion in its power business segment. The company anticipates remarkable double-digit growth in 2024, leveraging its expansions in the North American and Japanese markets. Datong has labeled 2025 as a breakout year for its overseas market endeavors.

Delta Electronics (2308-TW) also shared its strategic vision, with Chairman Ping Cheng outlining a commitment to hydrogen energy production. This includes looking at a trial production line for battery stacks and system equipment slated for operation by the end of 2026. The potential expansion promises substantial investment into production capabilities.

Asia Cement (1102-TW) is also making strides with its focus on the low-carbon cement market, projecting a sizeable growth in line with sustainability trends. Despite current regulatory and adoption challenges, the company is optimistic about increasing its output to 500,000 tons by 2035.

Notably, the National Realty Bureau's latest statistics indicate a shift in pre-sale housing markets, with numbers falling to their lowest in 20 months. This is attributed to a confluence of higher interest rates, tight credit, and economic uncertainty impacting consumer expectations around future real estate prices.

Finally, continued adjustments in foreign investments saw strategic reallocations, with foreign investors selling shares worth NT$15 billion while refocusing on key stocks, including electronic board producers Innolux and AU Optronics. Overall, this mix of recovery, strategic investment, and sustainable initiatives paints a complex yet promising picture of Taiwan's evolving economic landscape.