U.S. Gains Lift Taiwan Stocks Back Above Quarterly Line
Taiwan stocks on the 28th moved with U.S. stocks, with the weighted index opening up 306.56 points, opening high and moving higher to reclaim the quarterly line and the 5-day moving average in one move. The four major U.S. indices closed higher across the board on the 27th, boosting market confidence, and the four major heavyweight stocks rose together to become the main force supporting the market higher, with the index up more than 742 points by 30 minutes in. The OTC market index opened up 3.26 points and then moved higher in consolidation, up more than 11.2 points by 31 minutes in.
Electronics Lead as Memory Stocks Rise Across the Board
21 minutes after the open, the top three gaining sectors in order were optoelectronics, electronic components and plastics, with electronics-related sectors again playing the market mainstream. Memory stocks continued to rise across the board, as Tesla CEO Elon Musk said robot mass production faces surging memory demand and short supply, while AI servers also face material shortages after volume ramp-up, pushing 4th-quarter memory prices up another 30%, with domestic and foreign institutional investors optimistic about the memory sector's 4th-quarter revenue and profit growth momentum, and DRAM stocks moving higher on volume.
Powerchip Surges on Heavy Volume, Leading the Sector
Powerchip (6770) rose for a 4th straight day, opening high and moving higher in consolidation, with the most active trading, rising NT$3.4 on volume in less than 20 minutes to a high of NT$72.8 at 17 minutes in, then holding in a range up more than 2%, oscillating around 2.5%, with volume already exceeding 73,200 lots by 36 minutes in, the highest among sector stocks. Calculated at the intraday price of NT$71.3 on the 28th, the stock had moved back above all moving averages.
September Revenue Hits Record High With Simultaneous Institutional Net Buying
Powerchip's self-reported September consolidated revenue was NT$7.665 billion, up 9.36% month-on-month and 94% year-on-year, a record high, and the 7th straight month of both monthly and yearly growth; cumulative revenue for the first 3 quarters was NT$52.21 billion, up 52.5% year-on-year, the second-highest in history. As of the close on the 27th, foreign investors net bought 56,012 lots, investment trusts net bought 4,937 lots, dealers net bought 1,687 lots, and major players net bought 59,415 lots. The Money Weekly research department said the divergence rate from the 5-day line to the monthly line is in the normal range of 4.9% to -1.5%, the current stock price is in a reasonable range, and short-term trading can be conducted back and forth near the 5-day line.