Shares of contract chipmaker Taiwan Semiconductor Manufacturing Company set new highs in early trading in Taipei on Tuesday morning, rising the maximum 10 percent before retreating.
Hot money propelled the Taiwan Stock Exchange to new heights on July 28. The massive number of transactions caused the index to rise by over 400 points at the start of trading. At one point, it exceeded 13,000 points. After hitting 13,031 points, it began retreating under profit-taking selling pressure and fell to 12,642 points.
If you look at it from a short term perspective, 13,000 points is unsustainable, because the quantity of transactions at this mark is too unusual. It's clear that people were taking gambles and it's possible that the index will first fall and then rise.
Taiwan Semiconductor Manufacturing Company shares began trading at NT$464. The price then rose to NT$466. The gain was 9 percent based on the share price the previous day. The effects of selling pressure then kicked in, affecting the share price and causing it to fall to NT$435 at one point. The TSE has seen recent bullish gains, and investors have different opinions. Some have adopted a wait and see approach, while others are optimistic about gains.
It should steadily rise. I don't think we've seen the ceiling yet.
I wouldn't consider investing in the Taiwan Stock Exchange. There was one senior citizen who invested his pension and lost all of it.
Analysts say the stock exchange has performed well recently, but there are signs of pulling back. Investors should not act hastily. Moreover, the influx of hot money will cause the NT dollar to set new highs. Twenty minutes after the market opened, the NT dollar was at NT$29.23 to the U.S. dollar, rising by 27.7 cents, the highest level since April 2018.