Taipei: Shares in Taiwan surged by nearly 400 points Monday, setting new closing records as the electronics sector rebounded from Friday’s decline, driven by optimism surrounding artificial intelligence development.
According to Focus Taiwan, the Taiex, Taiwan Stock Exchange’s weighted index, gained 386.26 points, or 1.41 percent, closing at 27,688.63. This rally followed a 1.25 percent drop on Friday and saw the index fluctuate between 27,412.45 and 27,768.27, with a turnover of NT$485.86 billion (US$15.87 billion).
Equity market analyst Andy Hsu noted that Friday’s losses resulted from investors cashing in on recent gains, particularly in Taiwan Semiconductor Manufacturing Co. (TSMC), despite the company’s positive sales outlook for 2025. On Monday, renewed buying interest in AI applications led investors to seek bargains.
TSMC, the most significant stock in the local market, rebounded by 2.07 percent, closing at NT$1,480.00, significantly contributing to the Taiex’s rise and boosting the electronics index by 1.91 percent. This buying momentum extended to other semiconductor stocks, with Global Unichip Corp. rising 2.01 percent to NT$1,525.00.
Memory chipmakers also benefited, as Winbond Electronics Inc. gained 5.46 percent to close at NT$46.35, and Nanya Technology Corp. rose 2.88 percent to NT$107.00. Hon Hai Precision Industry Co., a major AI server maker, saw its shares increase by 5.30 percent to NT$238.50, supported by strong AI server sales and a target price hike to NT$400 by foreign brokerages.
Major electronic component suppliers also saw gains, with Yageo Corp. rising 6.23 percent to NT$196.00. Despite the tech sector’s strength, old economy stocks lagged. China Steel Corp. dropped 0.79 percent to NT$18.90, and Tung Ho Steel Corp. fell 2.51 percent to NT$62.10, while Formosa Chemicals and Fibre Corp. and Formosa Plastics Corp. experienced slight declines.
The financial sector saw mixed results, with Fubon Financial Holding Co. losing 0.45 percent to NT$89.10 and Cathay Financial Holding Co. inching up 0.15 percent to NT$65.30.
Hsu anticipates the Taiex uptrend will persist, fueled by AI optimism, but advises caution regarding potential technical pullbacks. The U.S. Federal Reserve’s rate cut cycle is expected to provide ample liquidity, further supporting the index’s upward movement.
According to TWSE, foreign institutional investors conducted a net purchase of NT$14.22 billion worth of shares on the main board on Monday.