Taipei: Shares in Taiwan climbed on Monday, driving the Taiex above the 20,000-point mark for the first time since early April. This rise was attributed to a tech rally in the United States, according to dealers. The Taiex, which serves as the benchmark index for the Taiwan Stock Exchange, closed up by 161.68 points, or 0.81 percent, at 20,034.41. The index fluctuated between 19,972.07 and 20,073.75 throughout the day, with a turnover amounting to NT$215.45 billion (US$6.63 billion).
According to Focus Taiwan, the electronics sector led the charge, rising by 0.76 percent after the tech-heavy Nasdaq index in the United States saw a 1.26 percent increase on Friday. This marked the first time the Taiex closed above 20,000 points since April 2, when it ended at 21,298.22. MasterLink Securities analyst Tom Tang remarked that the day’s buying activity mirrored the ongoing rally in U.S. markets, which appeared to stabilize following the initial shock from tariff impositions. Tang expressed optimism that the worst effects of the tariffs had passed.
TSMC, a major player in contract chipmaking and the most heavily weighted stock on the exchange, saw its shares rise by 1.01 percent to close at NT$897.00. This contributed over 70 points to the Taiex’s upward movement. Tang noted that TSMC’s performance helped the Taiex move past technical barriers near the 20,000-point level, setting the stage for a potential challenge to the 60-day moving average of around 21,800 points.
Global Unichip Corp., a subsidiary of TSMC specializing in application-specific integrated circuits, experienced a gain of 5.21 percent, closing at NT$1,030.00. Meanwhile, MediaTek Inc., a smartphone IC designer, saw a decline of 2.17 percent, ending at NT$1,350.00. ASE Technology Holding Co., which provides IC packaging and testing services, finished slightly down by 0.36 percent at NT$137.00.
In the electronics sector, Hon Hai Precision Industry Co., known for assembling iPhones and engaging in artificial intelligence, rose by 2.52 percent to close at NT$142.50. Quanta Computer Inc. reported over the weekend that its AI server clients had not reduced orders despite U.S. tariff policies, and its stock rose by 4.26 percent to NT$245.00.
Tang also highlighted the financial sector’s contribution to the Taiex’s strength, rising by 0.44 percent amid expectations of substantial cash dividend payouts. CTBC Financial Holding Co. saw an increase of 2.84 percent to NT$38.00 following its announcement of a NT$2.3 per share cash dividend, the second highest in its history. Cathay Financial Holding Co. added 0.92 percent to reach NT$54.60, while Fubon Financial Holding Co. experienced a slight dip of 0.25 percent, closing at NT$79.20.
In the old economy sector, Teco Electric and Machinery Co. rose by 2.97 percent to NT$48.50, and Chung-Hsin Electric and Machinery Manufacturing Corp. gained 2.03 percent to close at NT$125.50. However, Formosa Plastics Corp. fell by 0.73 percent to NT$33.85, and Formosa Chemicals and Fibre Corp. declined by 1.20 percent to NT$24.75.
Tang pointed out that the Taiwan dollar’s appreciation against the U.S. dollar could encourage foreign institutional investors to inject more funds into the local market. The Taiwan Stock Exchange reported that foreign institutional investors purchased a net NT$5.87 billion in shares on the market on Monday.