Reported 8 months ago
In Taiwan, the stock market continued its bullish trend with foreign investors buying a net amount of 22.7 billion NT dollars, driven by Hon Hai (2317) boosting end-of-quarter holdings and the sustained popularity of container giants, resulting in a three-day winning streak. The index surged by 196 points to close at 23,406 points, setting a new historical high with a trading volume of 521.9 billion NT dollars. Benefiting from the optimism surrounding artificial intelligence (AI), NVIDIA stocks continued to rise, leading to a cumulative increase of 5,475 points or 30.5% in the Taiwan stock market so far this year, outperforming Asian markets and ranking second globally following the Nasdaq Composite's 38% gain. The market saw rotation among various sectors, with Hon Hai and Quanta Computer hitting new highs, while TSMC consolidated. Strong stocks were mainly in the semiconductor equipment, semiconductor packaging and testing, cooling, printed circuit board, memory, and gallium arsenide sectors. Additionally, small and mid-cap stocks showed a strong performance, with the Gretai market rising by 3.1 points to close at 271.7 points, hitting a new high in nearly 24 years. Major shareholders collectively bought 31.25 billion NT dollars, of which foreign investors maintained a net buying trend, accumulating 871.2 billion NT dollars from June onwards, and 1,566.3 billion NT dollars for the year. Meanwhile, proprietary traders made a significant buyback of 9.34 billion NT dollars, stopping a three-day selling streak, which signals confidence in future market performance. Investment trusts, on the other hand, sold 7.9 billion NT dollars, showing a decrease in demand, and major government-backed securities firms adjusted by 88.6 billion NT dollars, selling for the third consecutive day to prepare for potential market support at lower levels. Financial experts interpret the market as focusing on AI stocks globally, with positive news surrounding NVIDIA and TSMC, as well as the upward momentum from Hon Hai and Quanta Computer. Despite concerns over valuation, as long as the index remains above the monthly line (21,985 points) and quarterly line (20,981 points), a bullish outlook is still viable.
Source: YAHOO