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TAIEX Recovers Amid Tech Sell-off
17 Jul
Summary
- TAIEX recovered most losses after a 660-point intraday decline.
- Buying returned to large-cap and defensive stocks, offsetting tech weakness.
- TSMC and Foxconn saw gains while memory stocks faced selling pressure.
Taiwan's benchmark stock index, TAIEX, demonstrated significant volatility on Thursday, experiencing an intraday decline of over 660 points. The index ultimately recovered most of these losses, closing down a mere 6.61 points. This recovery was driven by a shift in investor focus from declining technology and memory-related stocks to large-cap and defensive sectors.
While many technology shares, including memory-related ones like Nanya Technology and Macronix International, saw significant drops, key large-cap stocks such as TSMC and Foxconn posted gains. Individual company news also influenced trading, with Largan Precision advancing on AI connectivity expansion. Traditional industries like construction and green energy, along with select manufacturing firms like Giant Manufacturing, attracted buying interest.
Analysts suggest the TAIEX has found support but has yet to stabilize, noting weakness in smaller-cap shares. Global factors, including rising oil prices and cautious monetary policy from the US Federal Reserve, are contributing to capital outflows and market adjustments. Investors are now anticipating TSMC's investor conference for insights into AI demand and production progress.
