Foreign capital continues to increase holdings, TSMC leads the explosive surge with limit-up the next day! Taiwan stocks stabilize above 28,300 points

Yesterday, Taiwan stocks were supported by a strong buying momentum from foreign investors, who bought a total of 22.6 billion yuan, with the three major institutional investors net buying 39.572 billion yuan, driving the index up by 453.29 points. The daily trading volume expanded to 493 billion yuan, indicating a clear increase in market activity. Benefiting from the continued rebound of US tech stocks, Taiwan stocks maintained a strong trend today, ultimately closing at 28,310.47 points, up 160.83 points, a 0.57% increase. Trading volume remained moderately expanded, laying a solid foundation for the year-end "Christmas rally."

**Semiconductor King Leads the Charge, Limit-up with Explosive Volume the Next Day Shows Muscle Again**

Market focus centered on the semiconductor king TSMC (2330), which surged by 25 yuan to close at 1,490 yuan, a 1.71% increase. Not only did it lead the market higher with strength, but it also became a target for both domestic and foreign institutional investors to increase their holdings simultaneously. The upward momentum was driven by positive news about TSMC’s second factory in Arizona, USA, planning to produce 3nm process technology, highlighting its technological leadership and solidifying its position as the industry leader most favored by the market. NVIDIA ADR also rose by 1.50%, the S&P 500 index closed higher for the third consecutive day, and the Nasdaq index gained, all providing a strong boost to Taiwan’s electronic heavyweight stocks.

**Large-cap Stocks Show Mixed Performance, Capital Focuses on Advanced Semiconductor Processes**

Today, the performance of large-cap stocks showed clear differentiation: TSMC (2330) rose by 25 yuan to 1,490 yuan; Taiwan Optical (2383) increased by 15 yuan to 1,615 yuan, a 0.94% rise; Mediatek (2454) fell by 10 yuan to 1,390 yuan, a 0.71% decline; Delta Electronics (2308) dropped by 10 yuan to 943 yuan, a 1.05% decline; Hon Hai (2317) and Evergreen Marine (2603) remained flat, closing at 224 yuan and 186 yuan respectively. Capital was clearly focused on the theme of advanced semiconductor processes, and TSMC’s strong performance exemplifies this capital flow.

**Market Fluctuates at High Levels, Technicals Steady Above Seasonal Support**

Taiwan stocks opened today at 28,253.14 points, reaching a high of 28,350.37 points during the session. Despite some profit-taking at high levels, the index remained above the 28,300-point mark, showing a high-level oscillation pattern. The technical outlook remains above the seasonal moving average, indicating that the bullish foundation is still intact and providing support for subsequent trends.

**Year-End Bullish Factors Converge, Index Still Has Room to Rise**

PGIM Prudential Fund Manager Guo Ming-yu said that as the year approaches its end, although foreign investor trading has slightly cooled, domestic institutional investors are actively positioning in thematic stocks, and market sentiment is not pessimistic. The current bullish factors include: continued gains in US tech stocks, US November CPI data below expectations indicating cooling inflation, TSMC’s overseas expansion and advanced process planning strengthening its industry position, and the traditional Christmas to Lunar New Year红包行情 (red envelope market) fermenting. Supported by these factors, it is expected that Taiwan stocks still have high points to reach before the end of the year. Investors are advised to focus on semiconductors, AI supply chains, memory, and small- and medium-cap stocks favored by domestic investors.

**Short-term Swing Trading, Watch Out for High-level Oscillation Risks**

Overall, Taiwan stocks have re-established a bullish trend driven by US stocks, foreign capital inflows, and domestic support. While optimism persists, investors should remain cautious of short-term volatility from profit-taking. During market consolidations, it is advisable to gradually position in industries with growth momentum in the first quarter of next year to seize opportunities in the year-end and early next year swing market.