TAIPEI (Taiwan News) — Taiwan’s stock market on Monday recorded a second consecutive record close as buying interest shifted toward small- and mid-cap shares, even as heavyweight TSMC remained under pressure.
The Taiwan Capitalization Weighted Stock Index (TAIEX) added 39.46 points to close at 35,457.29. Turnover totaled NT$778.8 billion (US$24.5 billion), according to CNA and CTEE.
TSMC declined 0.5% to NT$1,990. Delta Electronics rose 0.29% to NT$1,740, MediaTek gained 2.86% to NT$1,620, and Foxconn fell 0.25% to NT$200.
Despite a drop in TSMC, which is a major index component, funds rotated into small- and mid-cap stocks across several themes. These included quartz components, passive components, silicon photonics, semiconductor equipment, low-Earth orbit satellite, and glass-related shares.
Quartz crystal component makers TXC, Siward Crystal Technology, Tai-Saw Technology, Harmony Electronics, and Taitien Electronics all reached daily limit-ups. Quartz components, made primarily from silicon dioxide, are passive electronic parts widely used in communication equipment, generating stable, high-precision frequency signals, according to Sinotrade.
The passive component sector also posted gains. Polytronics Technology, Taiwan Chinsan Electronic Industrial, Trio Technology International, Prosperity Dielectrics, Honey Hope Honesty, Lelon Electronics, and Holy Stone all hit their daily limits.
Silicon photonics-related stocks, including Materials Analysis Technology, VisEra Technologies, and ShunSin Technology, also reached limit-up levels. Silicon photonics is a key technology in the semiconductor industry that improves energy efficiency and increases data transmission performance, according to Business Next.
Energy and petrochemical shares gained after US President Donald Trump announced a blockade of the Strait of Hormuz, raising concerns about Middle East supply conditions. Formosa Plastics gained 9.48%, Formosa Petrochemical rose 5.96%, and Nan Ya Plastics added 5.02%.
Tourism-related stocks rose after Beijing announced policy measures that could include allowing residents from Shanghai and Fujian to travel to Taiwan. Phoenix Tours, Star Travel, Ezfly, Richmond International Travel and Tours, Hoya Resort Hotel, and Chateau Hotels and Resorts all hit limit-ups.
In contrast, United Renewable Energy fell to its daily limit at NT$17.1. Selling by the state-backed National Development Fund triggered heavy selling pressure, with the stock down nearly 40% in less than a month.
The fund’s investment in the company has faced criticism and has been raised repeatedly in legislative questioning. It has since introduced tighter investment selection and clearer exit mechanisms, under which it decided to sell 4,201,476 shares, according to UDN Money.
Shinfox Energy extended its losing streak to a sixth straight limit-down session after its subsidiary, Foxwell Power, faced offshore wind project delays and higher marine construction costs. A dispute with contractor Taipower involving more than NT$10 billion is currently under mediation, according to FTNN.
Fuh Hwa Taiwan Future 50 Active ETF manager Lu Hung-yu (呂宏宇) said AI-driven earnings growth continues to support the longer-term outlook for Taiwan equities, particularly in computing power demand and hardware upgrade cycles. He added that investors may consider staggered buying strategies given ongoing geopolitical volatility.
Analysts said this week’s market focus will include developments in the Middle East and TSMC’s Thursday earnings conference. They added that geopolitical risk remains elevated, with oil prices potentially staying firm in the near term, contributing to continued uncertainty in global markets.
This information is not intended as personalized financial advice. Investors are encouraged to conduct their own research and analysis before making investment decisions.