Taiwan Stocks Recover 20-Day Moving Average Despite Overall Decline, Memory and Silicon IP Lead Rebound

Taiwan's stock market experienced a volatile trading session, ultimately closing down 214.9 points but managing to regain its 20-day moving average. The recovery was significantly bolstered by the performance of the memory and silicon intellectual property (IP) sectors, which played a crucial role in the day's trading.

The session began on a weak note, with the TAIEX opening 123.66 points lower. This downturn reflected a broader decline in Asian markets, which were influenced by a negative performance in the US markets, particularly the Philadelphia Semiconductor Index. Early trading saw weakness across semiconductor stocks, IC design firms, passive components, AI-related stocks, and financial shares, pushing the index down as much as 653 points to a low of 44024, breaching the 20-day moving average.

However, a strong rebound emerged in the latter part of the trading day. Gains in ABF substrate manufacturers, silicon IP providers, memory chip companies, and optoelectronics firms, alongside advances in traditional sectors like steel, rubber, and textiles, helped the index recover. This broad-based buying pressure allowed the TAIEX to claw back 372 points from its lowest point, closing at 44396.7 points.

Trading volume was substantial, reaching 940.3 billion New Taiwan dollars. Among the top traded stocks, Taiwan Semiconductor Manufacturing Company (TSMC) saw a decline of NT$40, closing at NT$2365, with a trading value of NT$54.025 billion. Conversely, Nanya Technology rose NT$14 to NT$459, and Winbond Electronics gained NT$2 to NT$171, both contributing significantly to the trading turnover. MediaTek also experienced a drop, closing down NT$80 at NT$3920.