Preface

The Taipei Stock Exchange experienced a significant surge today, with TSMC boosting the market alongside a notable increase in trading volumes across electronics, finance, and heavy electrical sectors. The market showed resilience as it attempted to close the 'Trump Gap' from April 7, ending the day up 552.61 points at 20,787.64 points. The turnover expanded to NT$326.658 billion, while the weekly line recorded an increase of 914.91 points.

Lazy bag

The Taipei Stock Market saw a remarkable rise powered by TSMC's strong performance. Investors remain cautious due to the pressure around the 20,000-point mark.

Main Body

Today, Taiwan's financial markets were buoyant, largely thanks to the exceptional performance of Taiwan Semiconductor Manufacturing Company (TSMC), listed as 2330-TW, which ended the trading session up by 42 points or 4.63%. This strong performance led a rally among electronic, financial, and heavy electrical stocks, nudging the entire market upwards. By market closure, the Taipei stock exchange index had increased by 552.61 points to settle at 20,787.64, marking a significant attempt to close the gap left by market fluctuations on April 7, also known as the 'Trump Gap'.

Market experts have noted that from its low of 17,306.97 points, the index has soared over 3,000 points. However, with the current trajectory, the 20,000 points mark is creating substantial upward pressure. Consequently, professionals are advising a cautious approach, suggesting investors hold onto stronger stocks while shedding weaker ones.

In parallel with the stock market’s robust performance, the foreign exchange market mirrored this success. At midday, the New Taiwan Dollar showed strength against the US Dollar, temporarily closing at 31.394, an appreciation of 6.23 cents, on a trading value of US$1.49 billion.

Seasoned securities analyst Jane Bock points out that the movement in the Taiwanese market is heavily influenced by external factors, particularly the potential reopening of tariff negotiations between China and the United States. This potential for negotiation has drawn funds back to the market, contributing to substantial rises. Still, investors should remain vigilant regarding the compounded pressure above the 20,000 points mark and the market’s heightened sensitivity to news.

Another analyst, Hank Hwang, emphasized that investors should pay attention to the financial reports from the first quarter and the prospective operational outlooks of various companies for the second quarter.

This trade session opened with the Taiwan Stock Exchange index at 20,235.03 points. Buying interest emerged during the session, lifting the turnover to NT$326.658 billion, an increase from the previous trading day, and marking a peak since April 14. At market close, the index reached 20,787.64 points, up 552.61 points, with the turnover further boosting to NT$326.658 billion. The electronics stock index rose by 3.39%, accounting for 68.64% of the total market turnover, while finance stocks increased by 0.36%, representing 4.4% of the market's transactions.

During today’s session, electronics stocks dominated, with TSMC opening at NT$938 and closing at NT$950, up by 42 points or 4.63%. Index heavyweights Quanta Computer (2382-TW) and Hon Hai Precision Industry Co., Ltd. (2317-TW) strengthened, closing up by NT$12.5 and NT$6, respectively, with Hon Hai ending at NT$147.5.

Container and shipping stocks like Evergreen Marine Corp. (2603-TW), Wan Hai Lines (2615-TW), and Yang Ming Marine Transport (2609-TW) closed in the positive zone, whereas Apple-related stocks saw mixed outcomes with Largan Precision (3008-TW) dropping by NT$50 and Genius Electronic Optical (3406-TW) rising by NT$2.5, closing at NT$378. Meanwhile, Asia Optical (3019-TW) remained unchanged at NT$135, with a contraction in trading volume compared to the previous day.

IC substrate stocks, such as Unimicron Technology (3037-TW), Kinsus Interconnect Technology (3189-TW), and Nan Ya PCB (8046-TW), showed solid gains by session end.

Key Insights Table