Taipei: Shares in Taiwan experienced a significant surge, marking the second-largest daily point gains on Wednesday. The upswing was driven by a decrease in concerns over the Middle East, which invigorated substantial buying in the electronics sector, according to dealers. The Taiex, Taiwan Stock Exchange's (TWSE) benchmark index, climbed 1,342.32 points, or 4.10 percent, to close at 34,114.19. Throughout the day, it fluctuated between 33,128.49 and 34,218.66, with a total turnover amounting to NT$670.67 billion (US$21.12 billion).
According to Focus Taiwan, Wednesday's remarkable gains were second only to the 1,608.27 points recorded on April 10, 2025. "In line with other regional markets, including Tokyo and Seoul, which moved sharply higher, the Taiex also braved the political uncertainties created by the war," MasterLink Securities Tom Tang commented. Tang highlighted that the combined gains of 2,003.77 points from Tuesday and Wednesday fully recuperated the losses of 1,489.12 points incurred due to military conflicts on Monday.
Tang further elaborated that the local market, rich in liquidity, witnessed investors resuming their investments in large-cap tech stocks. This trend was spearheaded by Taiwan Semiconductor Manufacturing Co. (TSMC), which saw its shares rise by 4.86 percent to close at NT$1,940.00. This rise contributed approximately 720 points to the Taiex's overall increase, propelling the electronics index up by 4.86 percent. Tang noted, "TSMC reported the highest February sales yesterday, reflecting robust AI demand."
Other tech stocks also posted gains, with smartphone IC designer MediaTek Inc. increasing by 3.52 percent to NT$1,765.00, and IC packaging and testing service provider ASE Technology Holding Co. gaining 2.98 percent to close at NT$345.50. Memory chip supplier Nanya Plastics Corp. surged by 10 percent, the daily maximum, ending at NT$254.00. AI server maker Hon Hai Precision Industry Co. saw an increase of 4.53 percent to NT$219.00, while Delta Electronics Inc., a power management solution provider, jumped 8.53 percent to NT$1,400.00.
The petrochemical industry also experienced growth, rising by 2.22 percent. Nan Ya Plastics Corp., Nanya Technology's parent company, climbed 6.05 percent to NT$82.40, and Formosa Plastics Corp. increased by 1.40 percent to NT$41.75. TCC Group Holdings Co. and Universal Cement Corp. also saw upticks, closing at NT$25.00 and NT$29.60, respectively.
However, the financial sector lagged behind the broader market, rising by only 0.74 percent. Fubon Financial Holding Co. experienced a small increase of 1.02 percent to NT$89.20, while CTBC Financial Holding Co. remained unchanged at NT$51.20. Tang concluded that "technically speaking, the Taiex could face stiff resistance ahead of 35,000 points if it continues to move higher. A pullback is possible, but it will provide good buying opportunities."
According to TWSE, foreign institutional investors purchased a net NT$37.18 billion worth of shares on the main board on Wednesday.