TAIPEI (TVBS News) — Taiwan's stock market tumbled on Monday (May 5), closing at 20,532 points with a significant drop of 254.65 points, or 1.23 percent. Trading volume reached NT$387 billion (US$13 billion) as the New Taiwan dollar's unexpected appreciation to the 29 range against the US dollar sent shockwaves through the electronics sector. The market plunged more than 460 points by midday before recovering slightly to close with a 254.65-point loss.
Taiwan's semiconductor giant TSMC (台積電) initially showed promise, opening NT$7 higher at NT$957 (US$32.12), but market sentiment quickly soured. The chipmaker's stock plummeted to a session low of NT$923 (US$30.98) before settling at NT$938 (US$31.48), down NT$12 for the day. Other tech heavyweights felt similar pressure, with iPhone assembler Hon Hai (鴻海) tumbling more than 3 percent and laptop manufacturer Quanta Computer (廣達) shedding nearly 1.8 percent of its value.
The strengthening New Taiwan dollar, however, created a silver lining for the travel industry as it enhances Taiwanese citizens' purchasing power abroad. This prospect fueled an impressive rally in aviation stocks, with budget carrier Tigerair Taiwan (台灣虎航) soaring to its daily trading limit. Legacy carriers also benefited substantially, as EVA Air (長榮航), China Airlines (華航), and the relatively new luxury airline Starlux Airlines (星宇航空) all recorded gains exceeding 3 percent amid expectations of increased international travel demand.
Market analysts at Taishin Securities Investment Trust Co., Ltd. (台新投顧) offered a nuanced perspective on the currency situation, acknowledging the headwinds facing Taiwan's crucial export sectors. Despite these challenges, they maintained an optimistic market outlook, citing robust foreign capital inflows and the waning impact of recent financial reports. The investment firm advised clients to pivot their portfolios toward domestic consumption, asset management, and energy sectors—areas potentially benefiting from or less affected by the stronger currency environment. ★
