Preface

The Taiwan stock market showed resilience today, with TSMC (2330-TW) reaching a record high of NT$1,465 before its upcoming investor meeting. Despite this, the index closed significantly higher, up 482.65 points at 27,275.71. The day's trading value was NT$500.109 billion. However, the three major institutional investors collectively sold NT$13.033 billion. Notably, after selling 43,379 shares of TSMC over the past five days, foreign investors turned to a slight buy of 206 shares today. This article delves into the detailed market movements and the key factors influencing these trends.

Lazy bag

Taiwanese stocks saw considerable activity today, with foreign investors selling over NT$13 billion yet stopping their consecutive TSMC sales. The electronics sector dominated with a 74.11% trading share.

Main Body

The focus of today's stock market was the strong performance of TSMC ahead of its critical investor briefing, achieving a new peak at NT$1,465. This surge contributed to a noticeable increase in the overall market, with the main index climbing by 482.65 points to close at 27,275.71. Trading activity was robust, recording a total value of NT$500.109 billion.

Breaking down the activities of the three major institutional forces, foreign investors were net sellers by NT$13.033 billion, continuing their strategic adjustments. Despite this sell-off, they halted a five-day streak of selling TSMC shares and instead purchased 206 shares today. In contrast, investment trusts demonstrated a consistent selling trend, offloading NT$1.11 billion worth of stocks over five days, while proprietary traders took a more opportunistic approach with net buying of NT$2.807 billion.

In the futures market, foreign investors also showed a positive turnaround. They posted a net position of 2,715 long contracts today, although they carried 21,671 outstanding short contracts. This shift indicates a cautious optimism and a hedge against potential future volatility.

Today's trading concentrated heavily within the electronics sector, which alone captured 74.11% of the total turnover. The semiconductor, AI cooling systems, diode, and IC substrate groups surged notably, contributing to the 2.26% rise in electronic stocks. This dominance was underscored by a significant capital influx of NT$370.6 billion.

The New Taiwan Dollar closed at 30.656 per US dollar, appreciating by 1.05 cents, with a total transaction volume of US$1.181 billion. It opened at 30.740 and fluctuated between 30.563 and 30.780 during the session.

Further analysis on individual stocks reveals that foreign investors heavily bought stocks such as Taiwan Shin Kong Financial Holdings and Walsin Technology. Conversely, they sold shares of companies like Nanya Technology Corporation and AU Optronics, indicating strategic reshuffling focused on potential growth sectors.

Investment trusts favored National Electronics and Advanced Semiconductor Engineering, while offloading shares in major companies like Hon Hai Precision and China Steel. Proprietary traders prominently invested in Cathay Financial and TSMC, whereas they reduced holdings in stocks such as Windbond Electronics and Powerchip Semiconductor.

Veteran securities analyst Huang Hansheng described the current Taiwanese stock market as entering a high-volatility phase, with particular strength in cooling, AI, and semiconductor stocks. However, yesterday's market crash of NT$680 billion, characterized by a long black candlestick, signaled a heightened sense of caution among investors. This atmosphere suggests that even minor market shifts could trigger substantial sell-offs, with the risks of chasing high stock prices increasing considerably.

Key Insights Table