Taipei: Shares in Taiwan closed lower on Thursday as Taiwan Semiconductor Manufacturing Co. (TSMC) pulled back from a historical high reached in the previous session. This retreat followed losses in TSMC’s American depository receipts (ADRs) on U.S. markets overnight.
According to Focus Taiwan, the Taiex, Taiwan Stock Exchange’s weighted index, ended down by 131.92 points, or 0.54 percent, closing at 24,238.10. The index fluctuated between 24,198.88 and 24,389.51 during the session, with a turnover of NT$473.53 billion (US$15.82 billion).
Cathay Futures Consultant analyst Tsai Ming-han noted that TSMC’s strong performance previously led investors to exercise caution, anticipating a technical pullback. As a result, selling pressure on TSMC shares emerged early, prompting investors to liquidate holdings and hold onto cash. Tsai also highlighted the ongoing scrutiny of U.S. tariff policies amid ongoing talks between Taipei and Washington.
TSMC shares fell 2.08 percent to close at NT$1,175.00, moving away from Wednesday’s historic closing high of NT$1,200.00. This decline contributed to a 200-point drop in the Taiex and a 1.05 percent decrease in the electronics index.
Some semiconductor stocks showed resilience, mitigating the impact of TSMC’s downturn. Smartphone IC designer MediaTek Inc. rose 1.46 percent to NT$1,390.00, while memory chip supplier Nanya Technology Corp. gained 0.65 percent to close at NT$46.35. Conversely, IC packaging and testing services provider ASE Technology Holding Co. dipped 0.34 percent to NT$148.00.
In other tech sector activities, iPhone assembler and AI server maker Hon Hai Precision Industry Co. advanced 0.50 percent to NT$199.50, and Largan Precision Co. increased 0.21 percent to NT$2,395.00. Meanwhile, PC brand Asustek Computer Inc. edged up 0.16 percent to NT$641.00, whereas Quanta Computer Inc., another AI server supplier, dropped 0.37 percent to NT$270.50.
Tsai observed that with the electronics sector largely weak, investors turned attention to non-tech stocks amid rotational buying. The textile industry saw a 2.34 percent rise, with Far Eastern New Century Corp. gaining 1.09 percent to NT$27.80 and Eclat Textile Co. surging 6.13 percent to NT$407.10.
In the old economy sector, Asia Cement Corp. climbed 0.76 percent to NT$39.80, while TCC Group Holdings Co. fell 3.84 percent to NT$23.80 following an estimated loss of NT$11.0 billion from a fire at subsidiary Molie Quantum Energy Corp.’s lithium-ion battery cell plant in July.
The financial sector rose by 1.13 percent, with Fubon Financial Holding Co. up 1.60 percent to NT$88.80 and Cathay Financial Holding Co. ending 1.41 percent higher at NT$64.60.
Tsai remarked that although the Taiex approached a historical intraday high of 24,416 points, investors remained cautious. However, with AI stocks in the U.S. experiencing a boom, Tsai expressed confidence that the Taiex, closely linked with U.S. markets, would not experience a significant downturn soon.
According to the TWSE, foreign institutional investors sold a net NT$4.46 billion worth of shares on the main board on Thursday.