Taipei: The number of people holding shares of contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) hit a new high this week despite a decline in its stock price, according to the Taiwan Depository and Clearing Corp. (TDCC).
According to Focus Taiwan, the number of TSMC shareholders rose to 2.46 million as of Friday, up 75,536 from a week earlier. The stock fell 1.34 percent during the same week to close at NT1,840.00 (US57.55). The decline in TSMC's share price was attributed to volatility in global tech stocks, influenced by rising international crude oil prices as the United States' and Israel's war against Iran continued.
Dealers indicated that the increase in TSMC shareholders was largely due to retail investors purchasing TSMC shares through odd-lots trading. This trading method allows the purchase of fewer than the standard block of 1,000 shares, making high-priced stocks more accessible. The number of TSMC shareholders holding odd-lot shares rose by 65,773 from a week earlier to about 1.96 million as of Friday. Additionally, the number of shareholders owning between 1,000 and 5,000 shares increased by 8,681 to 412,254.
However, the number of large shareholders holding 1 million shares or more fell by five, to 1,513, as shown by the data. Strong investor interest in TSMC stock was also observed earlier this week when TSMC went ex-dividend and the stock quickly returned to its pre-ex-dividend level as soon as the local market opened Tuesday.
When a stock goes ex-dividend, the cash dividend amount to be paid on the previous year's or earlier quarter's earnings is deducted from the stock's previous day closing price before the start of trading. TSMC began issuing quarterly cash dividends in 2019, replacing its previous annual payouts. Since then, the stock has returned to its prior ex-dividend level on the same day 21 times.
Analysts have noted that investors remain willing to hold TSMC shares due to optimism regarding the company's growth prospects in the AI era. Global demand for its advanced technologies, including 3-nanometer process nodes, has remained robust.