Stock Market

The TPEx index fluctuated and edged higher in the month of August. From the 1st to the 18th of the month, stocks involved in the AI-related supply chain enjoyed a strong rally, driven by Nvidia's continued price surge. Stronger demand for AI hardware once again pushed listed companies' revenues above the NT$4 trillion mark in July. August also saw the distributing peak of cash dividends for the Taiwan Stock Exchange, while unexpectedly weak US non-farm payroll statistics for July fueled expectations of a Fed rate cut. Furthermore, US President Trump announced a 100% tariff on semiconductors, with TSMC exempted due to its US investments. On the other hand, just before the US-China tariff grace period expired on the 12th, the US and China issued a joint statement confirming a 90-day extension of the tariff truce to November 10th, pointing to further negotiations. Amidst these positive news, the OTC Market Index saw a volatile rise of 16.34 points, closing at 248.34, a 7.04% increase. From the 19th to the 20th, the US government announced a stake in Intel and its intention to follow suit in acquiring equities in other companies subsidized by the Chip Act. This sparked market concerns that TSMC could be transformed into "USSMC," weakening Taiwan's strategic position in the global semiconductor supply chains. The OTC Market Index fell 7.02 points, or 2.83%, closing at 241.32. From the 21st to the end of the month, it was made clear that even though the US government gaining direct control of certain TSMC equities in the name of federal subsidies will not dilute the independence of the management's decision making, nor will the appointment of board members be significantly influenced, effectively lowering related market concerns. And Nvidia, a prominent buyer of Taiwanese products, is about to release its quarterly report, toward which Wall Street feels optimistic, citing promising revenues and profits, along with the potential of upward guidance revision. In addition, Fed Chairman Powell delivered a dovish speech at the annual meeting of global central banks, and the market's expectations for a September rate cut have increased. Good news led the OTC Market Index higher again. As of the end of the month (29th), the OTC Market Index closed at 255.00 points, up 23.00 points from the closing level of July, a monthly rise of 9.91%. Sector-wise, other electronic stocks turned in better performance, gaining 25.51%, while shipping and transportation stocks failed to deliver and fell 2.10%.

In the Emerging Stock Board stocks, the total turnover in the month of August amounted to approximately NT$138.448 billion, an increase of 27.57% in comparison with the previous month's total turnover of NT$108.526 billion. A total of 1,062,837 transactions were executed in the month of August. The daily turnover on the Emerging Stock Board averaged NT$6.593 billion, up 39.71% as compared to the average daily turnover of NT$4.719 billion last month. Total trading volume in the month amounted to 1,468,259 thousand shares, up 65.59% as compared to 886,659 thousand shares traded in the previous month. The market recorded the highest turnover of the month on the 20th with more than NT$9.6 billion.

Stock Index Movement and Turnover Chart