Taiwan Stock Market Update: Foreign Investors Sell TSMC Shares, Wistron's AI Investment Grows
Table of Contents
You might want to know
- Why are foreign investors reducing their stake in TSMC?
- How is Wistron diversifying its investments in AI technology?
Main Topic
The Taiwanese stock market exhibited significant fluctuations recently, with notable movements involving blue-chip stocks and strategic investments by key companies. The session on the 24th of February closed with the Taiwan Capitalization Weighted Stock Index (TAIEX) declining by 164.94 points to 23,565.31 points. Trading volume reached NT$361.9 billion, with the three major institutional investors collectively selling a total of NT$20.647 billion. A noteworthy shift was observed as foreign investors transitioned from net buyers to net sellers, offloading NT$19.52 billion in stocks, including substantial sales of nearly 9,785 shares of Taiwan Semiconductor Manufacturing Company (TSMC), while increasing their holdings in Shin Kong Financial by approximately 42,000 shares.
Wistron Corporation (stock symbol 3231-TW) made headlines during its investor conference on the 24th, where Chairman Simon Lin announced a substantial increase in capital expenditures to NT$35.5 billion this year, with AI-related investments accounting for over a third of this budget. This includes significant allocations of NT$6 billion for both the Taipei and Kaohsiung plant expansions, and further investments to meet overseas expansion needs in Mexico, Vietnam, and the United States.
Additionally, David Chen, COO of power component manufacturer Pan Jit International Inc. (stock symbol 2481-TW), highlighted the impending demand surge in the AI PC market expected in the latter half of the year. The company is actively investing in product lines pertinent to this growth, such as small MOS, Power MOS, Dr. MOS, LDO (low dropout voltage regulator), and ESD (electrostatic discharge) protection components, which are expected to enhance motherboard value and capture new opportunities. Concurrently, LDO components are penetrating the GB200 server market, aligning with the increasing integration of AI servers.
The competition between the Hong Kong Hang Seng Index and the Taiwanese stock market has intensified. On November 29, 2023, the Hang Seng briefly surpassed the TAIEX for the first time in decades. A subsequent rebound saw the TAIEX reclaim its position, although the Hang Seng index once again outperformed, reaching an intra-day high of 23,688 points on January 17, surpassing the TAIEX's peak of 23,592 points. However, profit-taking in the Hong Kong stock market turned the index from gains to losses at midday, indicating ongoing rivalry between the two markets.
Largan Precision Co., Ltd. (stock symbol 3008-TW), a prominent Apple supplier, disclosed approved full-year after-tax profits of NT$25.915 billion for 2024, a 44.75% increase year-over-year. The company also decided on a cash dividend distribution of NT$57.5 per share for the second half of the previous year, with total annual dividends totaling NT$97.5 per share—setting a new record for annual dividend distribution.
Meanwhile, the board of directors at T3EX Global Holdings Corp. (stock symbol 2636-TW) approved a change in management, announcing that General Manager Houl Chuo-lun will retire at the end of February. Yen Yi-Tsai, the founder of T3EX Logistics, will assume the role of General Manager.
Key Insights Table
| Aspect | Description |
|---|---|
| Foreign Activity | Foreign investors sold nearly 9,785 TSMC shares. |
| Wistron's AI Investment | Investing over a third of NT$35.5 billion in AI technologies. |
| Market Rivalry | Hang Seng briefly surpassed TAIEX amidst market rivalry. |
| Largan's Dividends | Announced NT$97.5 total annual dividend per share, a new high. |
Afterwards...
The fluctuations observed in both the Taiwan and Hong Kong markets are indicative of a dynamic and highly competitive global financial environment. Going forward, it is essential for investors and analysts to keep a close eye on how companies continue to allocate resources to emerging technologies such as AI, which could yield hybrid investment strategies benefitting both traditional value and growth sectors. Furthermore, companies must prepare for market volatilities and leverage technological advancements to mitigate risks and optimize investment returns.
Investors would be well-advised to pay attention to the evolving regulatory landscapes and international trade dynamics that could impact cross-border investments and market performance. Innovation and adaptability remain as crucial as ever in navigating the challenges and opportunities of the contemporary investment climate.