Taiwan Stock Market Opens Lower as TSMC Struggles, Drops 500 Points
Table of Contents
You might want to know
- How did TSMC's performance impact the Taiwanese stock market?
- What was the role of external factors like U.S. employment data?
Main Topic
The Taiwan stock market experienced a significant downturn today, driven by various factors. Despite Taiwan Semiconductor Manufacturing Company's (TSMC) efforts to stabilize the market, the index sharply declined. The opening saw a brief rise thanks to TSMC, but the overall lack of momentum led to a downturn of 500 points, dipping below the crucial 23,000-point mark to reach a low of 22,509.88 points, surpassing the six-month moving average support level. The estimated trading volume today was approximately 380 billion NT dollars.
TSMC, with the code 2330-TW, recently announced record-high revenues for December, surpassing prior forecasts for the fourth quarter and achieving its best annual results to date. Despite opening 10 NT dollars higher at 1,100 NT dollars and peaking at 1,115 NT dollars mid-trade, TSMC faced selling pressures that caused it to stabilize just above the break-even line.
Electronics sector stocks generally exhibited weakness, with major players such as Hon Hai (2317-TW), MediaTek (2454-TW), Quanta (2382-TW), Delta Electronics (2308-TW), ASE Technology Holding (3711-TW), Asus (2357-TW), Accton Technology (2345-TW), and Advantech (2395-TW) all declining between 2% and 3%. Additionally, Chin Poon (2368-TW) hit the limit down, while Unimicron (3037-TW) fell by 5%.
High-value stocks also showed lackluster performance. Largan Precision (3008-TW) fell over 4%, while Kinsus Interconnect Technology (3533-TW) lost half of its trading limit. Other stocks like Global Unichip (3443-TW), Transcend (2059-TW), and Wiwynn (6669-TW) dropped more than 4%.
In non-electronic sectors, a new wave of sanctions against Russia's energy industry by the U.S. caused international oil prices to rise. This upward momentum supported Formosa Petrochemical (6505-TW), which bucked the trend and increased by 2%. Alongside, Nan Ya Plastics (1303-TW) and Formosa Plastics (1101-TW) also showed strength, with stocks like Cheng Shin Rubber (2105-TW), Eclat Textile (8464-TW), and key players in the cement sector resisting the downward pressure.
Key Insights Table
| Aspect | Description |
|---|---|
| TSMC's Market Role | TSMC provided initial support but could not sustain market elevation. |
| Sector Weaknesses | Electronics sectors and high-value stocks generally faced declines. |
| Impact of U.S. Economic Factors | High U.S. employment figures negatively influenced market expectations for rate cuts. |
| Non-Electronic Sector Resilience | Rising oil prices led to gains in energy-related Taiwan stocks. |
Afterwards...
Looking ahead, it is essential for market observers to focus on both domestic strengths and international challenges. TSMC's ability to withstand selling pressures illustrates its critical role in the Taiwanese economic landscape, yet the broader market reflected global uncertainties. Investors and policymakers should consider adopting strategies that bolster industries resilient to international economic fluctuations while fostering sectors that can pivot effectively under evolving global conditions. As geopolitical tensions continue to play a pivotal role in market stability, it is crucial to stay informed about international policy shifts and their ramifications across various sectors.