Foreign capital returns during the surge! TSMC leads the rally with a 25 NT dollar increase, pushing the Taiwan stock market to 28,300 points

The strong performance of US technology stocks has injected a powerful boost into the Taiwan stock market. Today, the Taiwan stock index continued its bullish momentum, opening higher and closing at 28,310.47 points, up 160.83 points, a gain of 0.57%. The most eye-catching among them is undoubtedly the heavyweight TSMC (2330). Driven by market optimism, its stock price surged by 25 yuan to 1,490 yuan, a single-day increase of 1.71%, making it the absolute main player during this rapid rise.

Technology Stocks Rally, Foreign Investors Cannot Resist Returning to the Market

The S&P 500 index has been trending upward for three consecutive days, with the Nasdaq index rising in tandem. Nvidia and TSMC’s US depositary receipts increased by 1.49% and 1.50%, respectively. This rally has indeed stimulated investor buying enthusiasm. After the Taiwan stock market opened at 28,253 points and briefly touched a high of 28,350 points during the session, it faced some correction pressure at high levels but remained firmly above the key support of 28,300 points, showing a healthy high-level fluctuation pattern.

Notably, yesterday’s institutional net buying reached 39.572 billion yuan, with foreign investors adding a substantial 22.62154 billion yuan in a single day. Investment trusts and proprietary traders bought 1.12067 billion yuan and 15.8305 billion yuan, respectively. This active foreign investment not only supported the index to rise by 453.29 points but also expanded the daily trading volume to 493 billion yuan, indicating a clear warming of market sentiment.

Mixed Performance Among Individual Stocks, Semiconductor Themes Become Winners

Today, heavyweight stocks played a “happy or sad” show. TSMC (2330), buoyed by rumors of a new 3nm plant in Arizona, surged by 25 yuan to 1,490 yuan, becoming the driving force behind the market rally. Kinsus (2383) also performed well, rising by 15 yuan to 1,615 yuan.

However, not all heavyweight stocks benefited during this rapid rise. MediaTek (2454) fell by 10 yuan to 1,390 yuan, and Delta Electronics (2308) retreated by 10 yuan to 943 yuan. Hon Hai (2317) and Evergreen Marine (2603) remained unchanged at 224 yuan and 186 yuan, respectively. From the flow of funds, it is evident that investors are particularly focused on advanced semiconductor process themes, with TSMC leading due to its technological edge, maintaining its position as a favorite among both domestic and foreign investors.

Year-End Market Outlook, Analysts Are Optimistic

Looking ahead, PGIM Prudential Fund Manager Guo Mingyu pointed out that as the year-end approaches, foreign investors are somewhat cautious in their trading, but domestic institutional investors are actively seeking thematic stocks. Additionally, with the technical outlook of the broader market remaining above the seasonal line, the market sentiment is not pessimistic.

She emphasized several bullish factors supporting the current market:

• US tech giants continue to rise, providing upward momentum for Taiwan stocks
• US November CPI data exceeded expectations, reducing inflation risks and creating a loose environment
• Rumors of TSMC’s overseas production lines planning advanced processes, strengthening industry position
• Traditional year-end bonus market and pre-Lunar New Year buying gradually ferment

Based on these factors, Guo Mingyu believes that Taiwan stocks may maintain high-level consolidation during this rapid rise, with the index still having potential for higher points. Investors are advised to closely monitor themes such as semiconductors, AI supply chains, and memory, while also paying attention to opportunities in small- and mid-cap stocks favored by domestic funds.

Seize the Wave, Use Corrections to Strategically Position

Overall, with US stocks leading, foreign capital replenishing, and domestic institutions supporting, the Taiwan stock market has re-established a bullish pattern. TSMC’s leadership in the rally not only stabilizes the fundamental index but also significantly boosts market expectations.

While enjoying the benefits of this rapid rise, investors should be aware of the risks of short-term volatility. The current strategy should be to take advantage of market consolidations to position early in industries with strong growth prospects in the first quarter of next year. This approach allows capturing wave opportunities extending from the end of the year into early next year, maximizing capital efficiency.