Taiwan Stocks Fall 1,568 Points, Third-Largest Drop on Record, as Heavyweights Recover from Early Plunge

(Central News Agency, reporter Jiang Mingyan, Taipei 8th) Taiwan's stock market plunged 2,694 points in early trading on Monday, setting a new record for the largest intraday point drop. However, as heavyweight stocks pared their losses, the market closed at 43,502.78 points, recovering above the monthly moving average of 43,116 points. The index fell 1,568.16 points, marking the third-largest closing point drop in history. Investment consulting analysis indicated that the spot market did not exhibit the panic seen in the futures market, with some funds taking advantage of the dip to buy, but short-term volatility is inevitable.

US stocks plunged sharply on Friday, with the Philadelphia Semiconductor Index (SOX) tumbling 10.26%. Market concerns grew that the AI boom might be ending prematurely due to rising interest rates. Japan's Nikkei and South Korea's KOSPI fell approximately 4% and 8% during the session, respectively.

Taiwan's stock market experienced a Black Monday, opening at 44,507.49 points and dropping to an intraday low of 42,376.86 points, a crash of 2,694 points that set a new intraday record. The decline then narrowed, and the index recovered to near the monthly moving average of 43,116 points.

The Taiwan Weighted Index (TAIEX) closed at 43,502.78 points, down 1,568.16 points, or 3.48%. Trading volume reached NT$1.132531 trillion. The electronics sub-index fell 3.57%, the financial sub-index dropped about 2.83%, and the over-the-counter (OTC) index fell 4.29%. Today's closing point drop is the third largest in history.

Among heavyweights, TSMC closed down NT$70 at NT$2,295, a decline of 2.96%. Hon Hai Precision Industry and MediaTek both fell over 5%. Delta Electronics narrowed its losses, closing down less than 2%. Largan Precision fell nearly 4%.

Panel makers Innolux and AUO both hit their daily price decline limits. Memory stocks were weak, with Nanya Technology, Winbond Electronics, and Macronix International all falling about 5%. PCB stocks attracted bargain-hunting buyers, with Unimicron Technology, Nanya PCB, and Taiwan Union Technology paring losses, while Gold Circuit Electronics and Zhen Ding Technology closed higher.

Looking at high-priced stocks, the market king ASPEED Technology turned positive, while the market queen WinWay Technology edged lower. Most high-priced stocks were weak, but King Slide Works bucked the trend and hit its daily price increase limit. Jentech Precision Industrial, Chunghwa Precision Test Tech, Innodisk, and Kaori Heat Treatment all closed higher. Shiny Chemical and Browave both fell below the NT$1,000 mark, reducing the number of 'thousand-dollar stocks' on the Taiwan market to 48.

Huang Guowei, Vice President of Mega International Investment Advisory, told Central News Agency that while the market saw a significant drop in early trading, market sentiment was not as panicked as in the futures market. Because the stock market had seen considerable gains previously, current margin maintenance ratios are relatively high, preventing large-scale stop-loss or margin calls. Some funds even took advantage of the dip to buy, helping the index recover above the monthly moving average.

However, Huang pointed out that today's drop is the largest single-day decline in nearly two months, indicating that market confidence has inevitably been affected. Short-term consolidation is likely, but he does not expect further deterioration.

Looking ahead, he noted that market focus will shift to the US Federal Reserve's (Fed) interest rate decision meeting in mid-to-late June, watching for any hawkish signals. He did not rule out continued consolidation in the Taiwan stock market before the meeting, and whether today's low can hold remains to be seen.

Additionally, the upcoming US Consumer Price Index (CPI) release is a key indicator. Huang expressed concern that if inflation data again exceeds expectations, it could further fuel worries about rate hikes, putting pressure on the Taiwan stock market. (Editor: Zhang Junmao) 1150608