Rapid surge begins! TSMC leads the Taiwan stock market rally, pushing above 28,310 points, with bullish capital momentum ready to unleash

Taiwan stocks continued yesterday’s buying momentum today (23rd), opening above 28,200 points. By the close, the index rose 160.83 points to 28,310.47, a gain of 0.57%, with trading volume showing moderate expansion. The market’s biggest focus was on the strong performance of the heavyweight TSMC (2330)—a single-day increase of 25 yuan to 1,490 yuan, a rise of 1.71%. The bullish momentum is evident, not only pushing the market higher but also fueling market expectations for the end-of-year and first-quarter performances.

US Tech Rebound Drives Taiwan Stock Bullish Momentum

The upward movement of Taiwan stocks is driven by the continued rebound of US tech stocks. The S&P 500 index closed higher for the third consecutive day, with the Nasdaq also rising. NVIDIA and TSMC ADRs increased by 1.49% and 1.50%, respectively, injecting confidence into Taiwan’s electronics heavyweight stocks. The effect of foreign capital returning is clear—during the session, the index briefly reached a high of 28,350.37 points. Despite some selling pressure at high levels, the index remained above 28,300 points, showing a high-level oscillation pattern.

TSMC Stands Out, Leading to Sector Divergence

Today, the performance of heavyweight stocks was mixed, with TSMC’s gains being the most notable:

Gainers: TSMC (2330) up 25 yuan to 1,490 yuan; Powertech Technology (2383) up 15 yuan to 1,615 yuan, a 0.94% increase.

Decliners: MediaTek (2454) down 10 yuan to 1,390 yuan, a 0.71% decrease; Delta Electronics (2308) down 10 yuan to 943 yuan, a 1.05% decrease.

Unchanged: Hon Hai (2317), Evergreen Marine (2603) remained flat.

This mixed performance reflects ongoing capital focus on advanced semiconductor manufacturing themes. TSMC benefits from news of its Arizona plant planning to produce 3nm process chips, solidifying its technological leadership and becoming a target favored by both domestic and foreign institutional investors.

Major Institutional Buyers Increase Positions, Foreign Investors Net Buy 22.6 Billion Yuan in a Single Day

Reviewing the post-market data from yesterday (22nd), the three major institutional investors bought a total of 39.572 billion yuan, with foreign investors adding 22.62154 billion yuan, investment trusts buying 1.12067 billion yuan, and proprietary traders purchasing 15.8305 billion yuan. The clear buying activity from foreign investors not only boosted the index by 453.29 points to re-enter the 28,000-point level but also expanded the daily trading volume to 493 billion yuan, indicating a clear sign of market sentiment recovery.

Christmas Rally Building, Year-End Gains Still Possible

According to PGIM Prudential Fund Manager Guo Ming-yu’s analysis, as the year approaches its end, although foreign trading activity has slightly cooled, domestic institutional investors are actively positioning in thematic stocks. Coupled with the technical support of the index remaining above the seasonal line, market sentiment remains optimistic. She highlights current positive factors including:

External support: Continued rise of US tech giants; US November CPI data below expectations, indicating cooling inflation which favors capital inflow.

Internal themes: News of TSMC’s overseas expansion plans for advanced processes, strengthening its industry leadership; the traditional Christmas to Lunar New Year红包行情 gradually gaining momentum.

With these positive factors, it is expected that Taiwan stocks will still have high points before the end of the year. The index will likely maintain high-level oscillations with sector performance diverging. Investors should focus on semiconductors, AI supply chains, memory, and small- and mid-cap stocks favored by domestic capital.

Seize Swing Opportunities, Position for Next Year’s Growth Drivers

Overall, Taiwan stocks, driven by US markets, foreign capital inflows, and domestic support, have regained a bullish trend. Led by TSMC’s rally, not only is the index stabilized, but market confidence is also boosted. While remaining optimistic, investors should be aware of short-term volatility risks from overextended gains. It is recommended to position in industries with growth momentum for the first quarter of next year during market consolidations to capture the upcoming wave from late year to early next year.