Preface

After the Teacher's Day holiday break, the Taiwan stock market opened on a positive note today, with a notable upward movement. TSMC and other sectors like memory, AI, and PCB showed strong performance. Initially, the index soared over 300 points, threatening the 26,000-point barrier. However, a late surge in trading volumes saw TSMC's stock dip, leading to a contraction in the index gains which ended at 240.22 points, closing at 25,820.54, just managing to stay above the 10-day moving average. The total turnover was 428.51 billion NTD.

Lazy bag

TSMC's late heavy trading reduced index gains, maintaining above 10-day average with sector support. Other electronics mostly gained; MediaTek rose modestly while Hon Hai dipped.

Main Body

With the reopening after the Teacher's Day break, the Taiwan stock market depicted robust enthusiasm as it opened with significant strength. The early trading hours saw multiple sectors, particularly semiconductors and technology stocks, faring well and pushing the index up by over 300 points. This surge came on the back of aggressive demand for TSMC, memory stocks, AI-related stocks, and a revival in PCB interest.

TSMC, being the heavyweight champion in the tech sector, initially contributed significantly to the upward movement, but by the end, faced intense selling pressure. A substantial volume of over 13,200 lots was traded in the final minutes, pulling the stock price from 1,320 NTD to 1,305 NTD, leading the wider market to record a slimmer gain of 240.22 points at the close, marginally holding above the 10-day moving average.

In the electronics segment, market movements were mixed. TSMC concluded the day with a nominal increase of 5 NTD. MediaTek experienced a slight gain, closing at 1,315 NTD. Other key players like Zyxel Networks and Quanta Computer saw modest gains, while Hon Hai closed with a minor dip.

The AI sector witnessed varied performances, with server ODM shares showing distinct positivity. Wiwynn posted an over 8% gain, while Gigabyte advanced by approximately 2%. The BBU group was also in focus with Lite-On Technology advancing close to 5%, and Delta Electronics added about 1% to its value.

Momentum in the memory stocks continued, propelled by ongoing discussions around memory pricing trends. Vanguard International Semiconductor hit a limit-up at closing, Winbond Electronics rose around 8%, Nanya Technology advanced 4%, and Macronix International increased by about 3%.

Additionally, capital found its way into fiberglass and PCB concept stocks. Unimicron Technology experienced a surge of over 5%, Kinsus Interconnect Technology moved up close to 5%, and both Taiwan Glass and Formosa Advanced Technologies reported increases of approximately 4%.

Key Insights Table