- After reaching a historic high with a surge of over 900 points, the Taiwan Weighted Index faced selling pressure at high levels, ending with a slight increase of only 25.91 points, closing at 45,380.52 points. This indicates intensified market divergence near historical highs, with trading volume expanding to over one trillion New Taiwan dollars.
- The performance of weighted stocks showed significant divergence. TSMC rose against the trend with buying support, playing a key role in stabilizing the market, while other heavyweight stocks like MediaTek and Hon Hai faced profit-taking pressure, limiting the overall market gains.
- Market funds rotation showed extreme polarization, with optical and military-themed stocks surging to the limit up on favorable support, while some electronics and passive component stocks faced concentrated selling, hitting the limit down.
Historic Highs Trigger Intense Volatility
The weighted index was boosted by strong U.S. stocks in the morning, soaring to 46,330.91 points. However, significant short-term profit-taking pressure hindered further gains. Trading volume expanded beyond one trillion New Taiwan dollars, indicating frequent turnover at high levels. The intensified market tug-of-war led the index back to a narrow fluctuation range, reflecting cautious market sentiment towards further valuation expansion at high levels.
Core Weighted Stocks Show Divergent Trends
Large-cap stocks showed clear divergence. TSMC (2330) remained strong, closing up 25 NT dollars to 2,440 NT dollars, acting as a pillar supporting the market. In contrast, MediaTek (2454) and Hon Hai (2317) saw capital withdrawal, with MediaTek experiencing a significant drop. This internal shift among core weighted stocks indicates structural defensive repositioning within the weighted sector.
Thematic Stocks Attract Capital, Showing Resilience
Amid overall market pressure, stocks driven by specific industry fundamentals and themes stood out. Largan Precision (3008) and Han Hsiang (2634) were strongly pursued by buyers, surging to the limit up. This indicates that in the context of rising market risk aversion, AI supply chain and military-themed stocks with clear fundamental support remain the core focus for speculative and institutional investors.
Rational Valuation Adjustment in Some Electronics Sectors
In stark contrast to strong stocks, some previously high-gaining electronics and passive component sectors faced profit-taking. Stocks like Realtek (2379) and Yageo (2492) experienced significant pullbacks under selling pressure, with several stocks hitting the limit down. Analysts point out that as Taiwan stocks maintain high-level fluctuations, funds are reshuffling stocks with overly high valuations lacking immediate performance support.
