Shares in Taiwan on Friday ended slightly lower amid caution over a possible pullback after a recent strong showing, but the weighted index still managed to close above the 10,300-point mark, dealers said.
With the broader market moving in a narrow range throughout the session, large-cap stocks such as contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and contract electronics producer Hon Hai Precision Industry Co (鴻海精密) were in the doldrums, making it unlikely for the entire main board to escape the weakness, the dealers said.
The weighted index on the Taiwan Stock Exchange (TWSE) closed down 21.36 points, or 0.21 percent, at 10,377.70, after moving between 10,374.01 and 10,422.33 on turnover of NT$90.40 billion (US$2.97 billion). That compared with a close of 10,156.73 on June 16.
The market opened up 4.50 points on Friday and rose to the day’s high, breaching 10,400 points briefly, in the early morning session on follow-through buying from a day earlier, but selling then emerged that focused on tech heavyweights and spread to old economy and financial stocks, pushing the weighted index into negative territory, with weakness continuing to the end of the trading session, the dealers said.
“The market came off an earlier high after passing 10,400 points. Technically speaking, today’s movement showed that some investors started to feel wary of possible major corrections and preferred to pocket their money for the moment,” Ta Ching Securities Co (大慶證券) analyst Andy Hsu (許博傑) said.
“More importantly, foreign institutional investors’ buying has been diminished, which made many local investors wonder whether foreign investors, who had served as a driver to the gains on the main board, have also turned cautious after the weighted index hit a 27-year high,” Hsu said.
The previous day, the weighted index ended at 10,399.06, the highest closing level since April 6, 1990, when the weighted index ended at 10,440.67 points.
According to the TWSE, foreign institutional investors shifted to the sell side, recording a net sale of NT$2.91 billion of shares on the main board on Friday after a net buy of NT$2.87 billion the previous day.
The bellwether electronics sector was hit by cautious sentiment and fell 0.24 percent. The sector was the largest contributor to the upturn recently enjoyed by the broader market.
In the sector, TSMC, the world’s largest pure wafer foundry operator, fell 0.46 percent to close at NT$217 after hitting a new high of NT$218.50 in the early morning session, while Hon Hai, an assembler of Apple Inc’s iPhones and iPads, ended unchanged at NT$112.50.
The two stocks are the top two in terms of market capitalization in Taiwan.
Among other tech stocks, integrated circuit designer MediaTek Inc (聯發科) shed 2.03 percent to close at NT$265.50, while Largan Precision Co (大立光), a smartphone camera lens supplier to Apple, bucked the downturn to end up 1.53 percent at NT$4,965, lending some support to the broader market.
In the non-high-tech sector, Cathay Financial Holding Co (國泰金控) fell 0.61 percent to close at NT$49, while China Steel Corp (中鋼), the nation’s largest steelmaker, ended unchanged at NT$24.50 and Formosa Plastics Corp (台灣塑膠) gained 0.55 percent to close at NT$91.50.
“Investors had better pay close attention to the fluctuation of the [New] Taiwan dollar against the US dollar down the road to determine whether foreign investors will continue to add local equities at a time of an interest rate hike cycle in the United States,” Hsu said.
From April 1 to Friday, the NT dollar depreciated about 0.21 percent against the US dollar after an increase of about 6 percent in the first quarter.
Elsewhere in Asia, markets limped into the weekend, with energy firms still struggling after a bruising few days, while investors eye US President Donald Trump’s revised healthcare bill, hoping its success will open the way for his economic agenda.
Crude enjoyed a rare positive day on Thursday after hefty selling that sent it to a 10-month low, but the gains were small change as concerns over a global supply glut and US production overshadow output cuts by OPEC and Russia.
The sharp losses — oil is down about 25 percent from highs in January — has bloodied energy firms and, despite another pickup in the commodity, they continue to struggle.
In Hong Kong, China National Offshore Oil Corp (中國海洋石油) and PetroChina Co Ltd (中國石油天然氣) were in retreat, while Sydney-listed Woodside Petroleum Ltd and Inpex Corp in Tokyo were also down.
“Falling oil prices continue to temper sentiment in global macro markets, and while the ‘Nervous Nellies’ take solace as oil prices base overnight, don’t get too comfortable as the oil patch narrative will likely be the primary catalyst in the coming months,” Oanda Corp senior trader Stephen Innes said.
Tokyo’s Nikkei ended 0.1 percent higher at 20,132.67, compared with a close of 19,943.26 on June 16, while Shanghai gained 0.33 percent at 3,157.87, up 1.1 percent from 3,123.17 a week earlier.
Sydney put on 0.1 percent, Singapore fell 0.1 percent and Wellington was off 0.1 percent.
Seoul closed up 0.4 percent, while Hong Kong ended flat.
Traders are tracking events in Washington, where US Republican senators unveiled a revised healthcare bill to repeal the Patient Protection and Affordable Care Act, which market players hope will be able to pass through US Congress.
Markets went south earlier this year when an initial draft failed at the first hurdle, as Trump was unable to win enough support even in his own party — fueling concerns about his plans for other policies such as tax and infrastructure spending.
Republicans hold 52 of 100 seats in the US Senate and the latest, if still controversial, bill is designed to find an agreement between conservatives and more moderate Republicans.
“[The] Senate’s healthcare bill is ready for a vote,” AxiTrader chief market strategist Greg McKenna said. “That the GOP [Good Old Party] and president need this is no understatement politically. Because of the nuances of US budgetary policy and rules, the resolution to healthcare is a prerequisite to president Trump’s tax plans.”
“Or at least they become more problematic to structure if healthcare is not resolved,” he added.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday said its materials management head, Vanessa Lee (李文如), had tendered her resignation for personal reasons. The personnel adjustment takes effect tomorrow, TSMC said in a statement. The latest development came one month after Lee reportedly took leave from the middle of last month. Cliff Hou (侯永清), senior vice president and deputy cochief operating officer, is to concurrently take on the role of head of the materials management division, which has been under his supervision, TSMC said. Lee, who joined TSMC in 2022, was appointed senior director of materials management and
Nvidia Corp CEO Jensen Huang (黃仁勳) on Thursday met with US President Donald Trump at the White House, days before a planned trip to China by the head of the world’s most valuable chipmaker, people familiar with the matter said. Details of what the two men discussed were not immediately available, and the people familiar with the meeting declined to elaborate on the agenda. Spokespeople for the White House had no immediate comment. Nvidia declined to comment. Nvidia’s CEO has been vocal about the need for US companies to access the world’s largest semiconductor market and is a frequent visitor to China.
Hypermarket chain Carrefour Taiwan and upscale supermarket chain Mia C’bon on Saturday announced the suspension of their partnership with Jkopay Co (街口支付), one of Taiwan’s largest digital payment providers, amid a lawsuit involving its parent company. Carrefour and Mia C’bon said they would notify customers once Jkopay services are reinstated. The two retailers joined an array of other firms in suspending their partnerships with Jkopay. On Friday night, popular beverage chain TP Tea (茶湯會) also suspended its use of the platform, urging customers to opt for alternative payment methods. Another drinks brand, Guiji (龜記), on Friday said that it is up to individual
MAJOR CONTRIBUTOR: Revenue from AI servers made up more than 50 percent of Wistron’s total server revenue in the second quarter, the company said Wistron Corp (緯創) on Tuesday reported a 135.6 percent year-on-year surge in revenue for last month, driven by strong demand for artificial intelligence (AI) servers, with the momentum expected to extend into the third quarter. Revenue last month reached NT$209.18 billion (US$7.2 billion), a record high for June, bringing second-quarter revenue to NT$551.29 billion, a 129.47 percent annual increase, the company said. Revenue in the first half of the year totaled NT$897.77 billion, up 87.36 percent from a year earlier and also a record high for the period, it said. The company remains cautiously optimistic about AI server shipments in the third quarter,
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