The Taiwan stock market continued its rebound along the five-day moving average yesterday (18th), despite heavy losses in U.S. stock futures. Panel and printed circuit board (PCB) sectors — including Innolux (3481) and Huatong — surged on institutional buying and shareholder meeting momentum, drawing strong investor attention.
Amid renewed concerns over the rise of COVID-19 cases in the U.S., the Dow Jones futures fell by about 1%, temporarily dampening market sentiment. Fortunately, TSMC’s ex-dividend of NT$2.5 was quickly filled, and foreign investors extended their net buying streak to a third consecutive day, helping the broader market remain resilient. The over-the-counter (OTC) market, dominated by mid- and small-cap stocks, outperformed by hitting new highs, driven by strong performances in high-priced electronics and biotech stocks.
In addition to pandemic-related concept stocks, other strong-performing sectors included semiconductor materials and equipment, IC design, Mini LED, server-related industries, as well as panel and PCB stocks. These gains were mainly fueled by institutional window dressing, shareholder meeting optimism, China’s “de-Americanization” efforts, and industrial alliances.
Panel giant AUO announced at its shareholder meeting that production had returned to normal in the second quarter, with utilization rates remaining high. In addition, foreign analysts expressed optimism about the rebound of TV panel prices in the second half of the year. AUO’s stock rose 3.9% to close at NT$9.25. Meanwhile, Innolux, Radiant Opto-Electronics, Darwin Precisions, UBright, and GIS-KY all saw gains ranging from 3% to 6%, signaling a renewed sector rally.
In the PCB sector, Zhen Ding Technology forecasted a strong third quarter as it enters its traditional peak season, with demand growth expected from 5G and server applications. The company’s stock surged to NT$133, its highest level since November 29 last year, leading other Apple supply chain PCB makers such as Unimicron, Huatong, Compeq, and Flexium higher — further consolidating bullish sentiment.
Analysts pointed out that a strong New Taiwan dollar and a low-interest-rate environment are helping to sustain a bullish, oscillating uptrend in Taiwan’s equity market.
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