Taiwan Weighted Index Gives Up Early Gains To Close Below 45,000 As TSMC Shares Extend Their Decline

Taiwan's stock market failed to hold on to its intraday recovery on Monday. The Taiwan Weighted Index ended at 44,920.14, down 291.69 points or 0.65%, after briefly climbing above 45,150 during the session. TSMC shares fell 1.69%, while gains in MediaTek and Hon Hai offered some support.

The index opened at 45,034.53 and fell as much as 812.73 points to an intraday low of 44,399.10. Buying interest emerged at lower levels, pushing it up to a session high of 45,156.17. However, fresh selling towards the close pushed the index below the 45,000 mark. Total trading turnover stood at NT$758.8 billion (approximately $23.3 billion).

Which Stocks And Sectors Influenced Taiwan's Market?

TSMC was among the biggest drags on the Taiwan Weighted Index. Its shares fell 1.69% to NT$2,330, losing NT$40 during the session. The decline followed a sharp fall in its US-listed shares, which dropped 5.95% to $406.13 in the previous session.

Other heavyweight stocks offered some support. MediaTek recovered from early losses to gain NT$55 and close at NT$3,970. Delta Electronics rose NT$20 to NT$1,355 after hitting the daily lower limit on Friday. Hon Hai gained 2.24% to finish at NT$251. Together, MediaTek and Hon Hai contributed nearly 50 points to the index.

Sector performance remained mixed. Plastics, chemicals, optoelectronics, rubber, shipping, oil-gas-electricity and glass stocks ended higher. Financial stocks faced selling pressure, while memory, printed circuit board (PCB) and copper-clad laminate (CCL) stocks showed mixed performance.

In the broader market, 533 stocks advanced, 460 declined, and 132 remained unchanged. VIA Labs, Tex Year Industries and Fortune Oriental were among the biggest gainers, each rising 10%. HD Renewable Energy, Bionime and Holy Stone Enterprise were among the session's biggest losers.

What Lies Ahead For Taiwan's Stock Market?

Weakness in US technology stocks was a major factor behind the selling pressure. The Nasdaq and Philadelphia Semiconductor Index both fell sharply in the previous session amid concerns over AI spending and the returns expected from large investments in the sector. Taiwan index futures also dropped 867 points overnight, adding to concerns among local investors.

Foreign investors have been reducing their exposure to Taiwanese equities. On Friday, the three major institutional investor groups recorded combined net selling of NT$139.844 billion. Foreign investors and mainland Chinese investors accounted for NT$112.467 billion of the net outflow. Investment trusts, however, were net buyers of NT$23.993 billion.

The upcoming US Midterm Elections are another factor investors are watching. Market participants expect trading to remain cautious until the election results become clearer. The Taiwan dollar also weakened during Monday's session, briefly crossing the 32.7 level against the US dollar, adding to concerns about foreign fund flows.

There are some positive signs for the market. Taiwan's September export orders reached a record high, while its business climate indicator remained in the red-light category for the tenth consecutive month. Analysts also expect the country's economic growth to exceed 12% this year, supported by strong demand for artificial intelligence.

For now, investors will be watching whether heavyweight technology stocks can stabilise and whether foreign investors return to the market. The ability of the index to hold above recent support levels could also influence the pace of any recovery.

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