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Taiwan Stocks Dip Amid Sector Shifts
30 Sep
Summary
- Taiwan's main stock index fell 0.82% after last week's strong gains.
- Petrochemical and power semiconductor shares surged on supply shortages.
- Investors are closely watching oil prices and interest rates.
Taiwan's stock market, measured by the TAIEX, saw a decrease of 392.64 points, closing at 47,631.96 on Tuesday. This dip followed a week of strong performance, suggesting a more cautious investor sentiment.
Major technology stocks like TSMC and MediaTek experienced declines, impacting the overall index. Conversely, the petrochemical sector rallied, buoyed by global refining supply shortages and rising oil prices. Formosa Petrochemical and Nan Ya Plastics were among the gainers.
Power semiconductor stocks also performed well, with companies like Phoenix Silicon International and Episil-Precision seeing notable increases. This upward trend was attributed to anticipated price hikes by major international suppliers, benefiting Taiwanese manufacturers.
In contrast, the custom chip sector faced profit-taking after recent strong performance. Analysts noted that while the market saw overall declines, the majority of stocks still ended higher, indicating sector rotation rather than a broad sell-off.
Looking ahead, market volatility is expected to persist in the near term. Analysts recommend focusing on liquid AI stocks and companies with strong earnings. Long-term investors are advised to monitor key sectors such as advanced packaging, semiconductor equipment, and optical communications.
