Taiwan's Taiex index falls 1% to 23,986.39

Taiwan's Taiex index falls 1% to 23,986.39

Taiwan's stock market experienced a notable decline on Thursday, with the Taiwan Capitalization Weighted Stock Index, or TAIEX, dropping by 283.45 points to close at 24,236.45 [1]. This decrease, which represents a 1.2% fall, was largely attributed to concerns over Nvidia's sales in China following the chipmaker's record revenue report.

Key players in the market saw varied performances. Semiconductor giant Taiwan Semiconductor Manufacturing Company (TSMC) slipped by 2.52% to NT$1,160, while Foxconn declined by 0.96% to NT$206, and MediaTek eased by 1.07% to NT$1,385. In contrast, sectors such as robotics and artificial intelligence remained resilient. Techman Robot advanced above NT$700, and Hota Industrial hit the maximum allowed intraday gain at NT$72.9.

Several companies extended their gains following announcements of partnership with Nvidia. Advantech, Innodisk, and Edom Technology saw extended gains, while Synnex Technology International, seen as a potential partner, also hit the daily limit. The electrical equipment sector also strengthened, with Shihlin Electric & Engineering rising by 2.18% to NT$187.5 following a strong order outlook through 2028.

Defense-related stocks extended recent gains, with Aerospace Industrial Development surging to the daily limit of NT$60, its highest level in 16 months, with trading volume exceeding 110,000 shares. Mega International Vice President Huang Kuo-wei noted that daily turnover has consistently stayed above NT$400 billion, yet the TAIEX has not tested its record high of 24,551.42 points. He suggested that the market may be entering a consolidation phase as investors await the US Federal Reserve's September rate decision.

The market's reaction to Nvidia's sales in China and the anticipation of the Federal Reserve's rate decision indicate a cautious sentiment among investors. Despite the decline, the TAIEX remained above the 24,000 mark, indicating a relatively stable market environment.

References:
[1] https://www.taiwannews.com.tw/news/6189171