The TAIEX ended the Year of the Dragon yesterday up about 30 percent, led by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電).
The benchmark index closed up 225.40 points, or 0.97 percent, at 23,525.41 on the last trading session of the Year of the Dragon before the Lunar New Year holiday ushers in the Year of the Snake.
During the Year of the Dragon, the TAIEX rose 5,429.34 points, the highest ever, while the 30 percent increase in the year was the second-highest behind only a 30.84 percent gain in the Year of the Rat from Jan. 25, 2020, to Feb. 11, 2021, Taiwan Stock Exchange data showed.
Photo: CNA
Trading in Taiwan is set to resume on Feb. 3, the sixth day of the first month of the Year of the Snake, the exchange said.
During the Year of the Dragon, the exchange’s market capitalization rose by more than NT$18 trillion (US$549 billion) to NT$75.53 trillion, an average of about NT$1.36 million for each of the 13.21 million investors in the market as of the end of last year.
TSMC, which closed at NT$646 at the end of the Year of Rabbit, soared 75.6 percent to NT$1,135 in the Year of the Dragon, and its market capitalization rose by NT$12.68 trillion, accounting for about 70 percent of the exchange’s total market capitalization growth.
Led by TSMC, the TAIEX breached the 20,000-point mark for the first time on March 8 last year, and hit a historical intraday high of 24,416.67 on July 11.
Schroder Investment Management (Taiwan) Ltd (施羅德證券投信) fund manager Bevan Yeh (葉獻文) said that while the TAIEX’s valuation had risen substantially, it still remained fair value.
TSMC’s American depositary receipts are trading at a growing premium over the stock in Taiwan, Yeh said, reflecting the confidence foreign institutional investors have in Taiwan’s semiconductor industry.
Foreign fund inflows are also expected to continue supporting the TAIEX and help it set new records, he said.
Taishin Securities Investment Advisory Co (台新投顧) analyst Tony Huang (黃文清) said that during the holiday, investors should monitor whether US President Donald Trump imposes new tariffs on China and the earnings reports of US companies, especially technology giants.
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