Taipei: The Taiex ended the Year of the Dragon on Wednesday up about 30 percent, led by contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC). The Taiex, the Taiwan Stock Exchange's benchmark weighted index, closed up 225.40 points, or 0.97 percent, at 23,525.41 on Wednesday, the last trading session in the Year of the Dragon before the Lunar New Year holiday ushers in the Year of the Snake.
According to Focus Taiwan, between Feb. 10, 2024, and Jan. 28, 2025, the Taiex rose 5,429.34 points, marking the highest point increase ever for any Chinese zodiac year; the 30 percent increase was the second highest, behind only the 30.84 percent gains in the Year of the Rat from Jan. 25, 2020, to Feb. 11, 2021. Trading in Taiwan is set to resume on Feb. 3, the sixth day of the first month of the Year of the Snake.
During the Year of the Dragon, the exchange's market capitalization increased by over NT$18 trillion (US$547 billion) to NT$75.53 trillion. This equates to an average gain of about NT$1.36 million for each of the 13.21 million investors in the market as of the end of 2024.
TSMC, which ended the Year of Rabbit at NT$646.00, saw its stock soar 75.6 percent to NT$1,135.00 in the Year of the Dragon. Its market capitalization rose by NT$12.68 trillion, accounting for approximately 70 percent of the exchange's total market cap growth. The company has projected its sales for 2025 to increase by 24-26 percent in U.S. dollar terms, significantly outpacing the 10 percent growth estimated for the global semiconductor sector.
Led by TSMC, the Taiex exceeded the 20,000-point mark for the first time on March 8, 2024, and achieved a historical intraday high of 24,416.67 on July 11. Yeh Hsien-wen, a fund manager at Schroders, noted that despite the substantial rise in the Taiex's valuation, it remains fair. TSMC's American depositary receipts (ADRs) are trading at a growing premium over the stock in Taiwan, indicating strong confidence from foreign institutional investors in Taiwan's semiconductor industry.
Foreign fund inflows are anticipated to continue bolstering the Taiex, potentially setting new records. Tony Huang, an analyst with Taishin Securities Investment Advisory, advised that during the holiday, investors should keep an eye on whether U.S. President Donald Trump imposes new tariffs on China and the financial performance of U.S. companies, particularly tech giants.