TAIEX Ends at New Record High on Tech Rally

The TAIEX, Taiwan’s benchmark stock index, was almost flat, closing at 49,806 on Wednesday, after gaining in the previous five sessions, as rises in finance and process industries offset declines in electronic technology and producer manufacturing. Rising oil prices pressured sentiment amid rising expectations for inflation and interest rate hikes. An upbeat session on Wall Street overnight, buoyed by gains in tech-heavy sectors, also fueled sentiment, while caution prevailed ahead of the release of the FOMC minutes. However, the broader index closed above the 49,000 mark for the third straight session. Electronic technology dropped 0.4%, with TSMC, the world’s largest contract chipmaker and accounting for more than 40% of the market’s total value, remaining flat after rising in the previous session. Meanwhile, MediaTek fell 1.7%, Delta Electronics dropped 2.9%, while United Microelectronics, Fubon Financial, and Cathay Financial rose by 0.7%, 0.3%, and 1.3%, respectively.

The TAIEX, Taiwan’s benchmark stock index, fell 84 points, or 0.2%, to 49,739 intraday on Wednesday, halting gains from the previous five sessions, as traders took profits after the index hit a record high a day earlier. The decline was mainly led by losses in electronic technology and technology services. However, the broader index remained above the 49,000 mark for the third straight session intraday, following a close at 49,823 on Tuesday. Rising oil prices pressured sentiment amid rising expectations for inflation and interest rate hikes. An upbeat session on Wall Street overnight, however, capped the fall, buoyed by gains in tech-heavy sectors. Electronic technology dropped 0.5%, with TSMC, the world’s largest contract chipmaker and accounting for more than 40% of the market’s total value, shedding 0.4% after rising in the previous session. Meanwhile, MediaTek fell 1.3%, Delta Electronics dropped 3.4%, Hon Hai Precision shed 1.6%, and ASE Technology Holding dropped 1.6%.

The TAIEX, Taiwan’s benchmark stock index, rose 111 points, or 0.2%, to a fresh record peak of 49,823 on Tuesday, extending gains for a fifth consecutive session, buoyed by gains in financials, process industries, and technology services. The broader index closed above the 49,000 level for the second straight session, tracking an upbeat session on Wall Street overnight, driven by a rally in tech stocks. Traders sought to capitalize on the momentum, with the financial sector rising 1.2%, mainly supported by gains in Fubon Financial Holding (1.6%), Cathay Financial Holding (0.5%), and CTBC Financial Holding (1.5%). Meanwhile, process industries climbed 1.4%, with Nan Ya Plastics Corp. rising 2.5%, while technology services surged 3.5%, boosted by a 6.5% jump in Wiwynn Corp. By contrast, electronic technology edged down 0.1%; however, TSMC, the world's largest contract chipmaker and accounting for more than 40% of the market's total value, rose 0.4%.