Taipei:Taiwan's stock market experienced a significant downturn as the Taiex, the benchmark index of the Taiwan Stock Exchange, tumbled 1,374.19 points, marking a 3.2% decrease. The index closed at 41,574.72, which is its lowest level since July 31, driven by concerns regarding potential delays in the deployment of artificial intelligence (AI) data centers.
According to Focus Taiwan, the decline in the Taiex represents the 13th largest single-day closing-point loss in the market's history. The market witnessed an intraday low of 41,513.57 points, with a total turnover of NT$926.02 billion (US$28.21 billion). This market sentiment was influenced by the overnight losses seen in the Philadelphia Semiconductor Index, which raised fears of delayed AI data center deployment in the United States, leading to widespread selling in major technology stocks.
Among the heavily impacted stocks, Taiwan Semiconductor Manufacturing Co. (TSMC) experienced a decline of 0.88%, closing at NT$2,240. Other significant technology companies also faced steep declines, including MediaTek Inc., which dropped 6.86% to NT$3,460, Delta Electronics Inc. with a 7.38% drop to NT$1,130, and Hon Hai Precision Industry Co., also known as Foxconn, which fell 2.08% to NT$235.
Cooling-solution providers such as Auras Technology Co., Jentech Precision Industrial Co., and Kaori Heat Treatment Co. reached the 10% daily loss limit, while AVC Corp. decreased by 9.04% to NT$2,565. In the printed circuit board (PCB) sector, companies like Elite Material Co., Taiwan Union Technology Corp., ITEQ Corp., Ventec International Group, and Gold Circuit Electronics also hit the 10% daily limit. The major ABF substrate producers, including Unimicron Technology Corp., Nan Ya PCB Corp., and Kinsus Interconnect Technology Corp., faced similar declines.
Despite the overall market downturn, certain traditional industries like financials, textiles, cement, and rubber stocks displayed some resilience. Tony Huang, the chief strategy officer at Taishin Securities Investment Advisory, attributed the volatility to weakness in U.S. technology and semiconductor stocks and the uncertainty following the U.S. midterm elections. Huang advised monitoring the progress of AI data center deployment and developments in U.S.-Iran negotiations, emphasizing that demand for AI components remains strong.
Additionally, foreign institutional investors recorded a net sale of NT$102.46 billion worth of shares on the main board, marking the 10th largest one-day net sell-off in history, as reported by the Taiwan Stock Exchange.
