Taipei: Shares in Taiwan concluded the day on a downward trajectory as investors exercised caution ahead of an Nvidia Corp. investor conference and the release of meeting minutes from the U.S. Federal Reserve. The Taiex dropped by 176.00 points, or 0.66 percent, closing at its lowest point of the day at 26,580.12, following a high of 26,902.97. The market faced additional pressure from last-minute selling in contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), with turnover amounting to NT$494.34 billion (US$15.84 billion).
According to Focus Taiwan, Cathay Futures Consultant analyst Tsai Ming-han noted that the electronics sector was unable to achieve a technical rebound, as tech stocks saw their gains diminish amid ongoing valuation concerns following recent gains among AI stocks. Investors are awaiting Nvidia’s results and guidance to assess tech valuations, leading to profit-taking, particularly in TSMC.
The market also consolidated due to rising concerns over the Federal Reserve’s next steps regarding its rate-hike cycle. Many investors were keen to access the Fed’s meeting minutes to gain a clearer understanding of future actions. As a result, nontech stocks largely exhibited weakness.
TSMC, Taiwan’s most heavily weighted stock, fell 0.71 percent to close at NT$1,395.00, significantly impacting the Taiex. Other semiconductor stocks also faced declines, with MediaTek Inc. losing 0.85 percent and ASE Technology Holding Co. dropping 2.56 percent. However, United Microelectronics Corp. bucked the trend, ending up 0.34 percent.
In the broader tech sector, Hon Hai Precision Industry Co. and Giga-Byte Technology Co. experienced declines, while the old economy sector saw losses in Formosa Plastics Corp. and Nan Ya Plastics Corp. The financial sector also declined, with Fubon Financial Holding Co. and Cathay Financial Holding Co. both closing lower.
Tsai advised investors to closely monitor U.S. market reactions to Nvidia’s results and the Fed’s meeting minutes, as these will influence the Taiwan market. He anticipates technical support around 26,500 points.
According to the TWSE, foreign institutional investors were net sellers, offloading NT$25.69 billion worth of shares on the main board on Wednesday.
