Financial Stocks Hit Record High, Memory Sector Soars, AI-Related Stocks Mixed Amid TAIEX Volatility at Elevated Levels

(Central News Agency reporter Chung Jung-feng, Taipei, June 16) U.S. stocks hit record highs, but electronic futures trading saw a slight pullback. Taiwan's stock market opened higher and experienced volatility at elevated levels, fluctuating between 45,200 and 45,800 points. Despite TSMC turning negative, artificial intelligence (AI)-related stocks showed mixed results, semiconductor facility engineering stocks retreated, while memory stocks surged. The financial index reached a new all-time high. Markets are closely watching the Bank of Japan's interest rate decision announcement today.

As of 10:47 a.m., the TAIEX stood at 45,661.33 points, up 264.34 points (0.58%), with a trading value of approximately NT$746.877 billion. The electronics index briefly turned positive, rising 0.48%. The financial index hit a record high of 3,149.17 points, surging 2.5%. The OTC index, representing small and mid-cap stocks, saw its gains narrow to 0.7%.

TSMC, the market heavyweight, turned negative in early trading, briefly dropping NT$25, and was down NT$10 to NT$2,365 at midday. MediaTek and Hon Hai showed slight gains, Delta Electronics rose over 1%, while ASE Holding turned slightly negative.

Yageo, a major passive components manufacturer, briefly touched the NT$1,000 mark before experiencing volatility, with gains narrowing to 3% during the session. Among memory stocks, Nanya Technology surged over 8%, and Winbond Electronics rose more than 5%.

High-priced stocks above NT$1,000 showed mixed performance. Zhaolian Industrial fell below the NT$1,000 threshold, while GlobalWafers hit the daily limit at NT$1,045. The number of 'thousand-dollar stocks' remained at 49.

Lin Han-wei, analyst at Moore Investment Consulting, noted that after-hours U.S. trading pulled back slightly, and international oil prices did not continue to decline. Markets are gradually digesting news of a ceasefire agreement between the U.S. and Iran. Today's TAIEX movement has been relatively cautious, lacking strong upward momentum, with large-cap stocks showing mixed performance.

Lin added that with Taiwan futures set to settle on the 17th, foreign investors still hold a high net short position of 66,000 contracts on the TAIEX futures. Foreign investors appear to be exerting downward pressure in the spot market, reflecting cautious positioning ahead of the Dragon Boat Festival holiday.

Looking ahead, Lin analyzed that market attention has shifted to the Bank of Japan's interest rate moves and their impact on Japanese stocks and the yen. This week, focus will be on the U.S. Federal Reserve's interest rate decision, the 'quadruple witching day' in U.S. markets on the 18th, and progress on the U.S.-Iran agreement scheduled for the 19th.

Institutional sources noted that 'quadruple witching day' occurs on the third Friday of March, June, September, and December each year, marking the expiration and settlement of four types of derivative financial instruments: stock index futures, stock index options, individual stock futures, and individual stock options. (Edited by Lin Chia-hsien) 1150616