Taipei: Shares in Taiwan closed lower on profit-taking as Taiwan Semiconductor Manufacturing Co. (TSMC) surrendered its earlier gains, dealers said. The Taiex, Taiwan Stock Exchange's benchmark index, fell by 210.47 points, or 0.46 percent, closing at 45,811.01 and ending a four-session upward streak. The index fluctuated between 45,798.31 and 46,402.60 throughout the session, with total turnover reaching NT$1.06 trillion (US$33.14 billion).
According to Focus Taiwan, TSMC entered a consolidation phase following a recent strong performance, prompting profit-taking, especially as the Taiex neared technical resistance around 46,000 points. Mega International Investment Service analyst Alex Huang noted that despite the downturn, TSMC's fundamentals remain solid amid the ongoing AI boom. TSMC, representing over 40 percent of the total market value, dropped 1.64 percent to close at NT$2,395.00, which affected the Taiex by approximately 320 points and caused the electronics index to fall by 0.78 percent.
Other semiconductor stocks also experienced declines. ASE Technology Holding Co. fell 1.60 percent to NT$616.00, Nanya Technology Corp. decreased 0.39 percent to NT$512.00, and MediaTek Inc. dipped 0.36 percent to NT$4,210.00. However, smaller electronics component makers like Elite Material Co. saw gains, rising 8.35 percent to NT$6,165.00, and Taiwan Union Technology Corp. increased by 4.69 percent to NT$1,675.00.
Huang highlighted a shift in investment interest towards "military concept" stocks, with shares in drone maker Thunder Tiger Corp. and fighter jet supplier Aerospace Industrial Development Corp. both surging by 10 percent. Additionally, Nan Ya Plastics Corp. rose 10 percent to NT$207.50 due to strong sales in its electronics raw material division, and Formosa Plastics Corp. climbed 4.35 percent to NT$60.00.
The financial index witnessed a 0.93 percent increase, supported by Cathay Financial Holding Co. rising 2.01 percent to NT$101.50, and Fubon Financial Holding Co. gaining 0.78 percent to NT$129.50. While the Taiex faced losses, it remained above the 5-day moving average of around 45,500 points, suggesting that the index is not yet technically weak. Huang expressed optimism for a potential rebound as the uptrend persists amid AI enthusiasm.
According to the Taiwan Stock Exchange, foreign institutional investors purchased a net NT$45.35 billion of shares on the main board Friday.