US Gains Lift Taiwan Stocks Higher to Reclaim Moving Averages
Taiwan stocks on the 28th moved in line with US stocks, with the weighted index opening higher and moving higher, reclaiming the quarterly line and 5-day moving average at the open. The four major US indexes all closed higher on the 27th, lifting Taiwan stocks on the 28th to open up 306.56 points, trending higher in intraday choppy trading, up over 742 points at 30 minutes. The four major heavyweight stocks rose together, becoming the main force supporting the market higher. The OTC market index opened up 3.26 points, then moved higher in choppy trading, up over 11.2 points at 31 minutes.
21 minutes after the open, the top three gaining sectors were optoelectronics, electronic components and plastics in order, with electronics-related sectors again acting as the market mainstream, and the broader market led higher by electronics stocks.
Memory Stocks Stay Strong as Powerchip Leads Gains on Heavy Volume
Memory stocks remained strong, with all stocks in the sector opening higher on volume, and DRAM stocks moving higher on volume. Tesla CEO Musk said robot mass production faces surging memory demand and supply falling short of demand, supporting broad gains across the sector.
Powerchip (6770) again drew huge volume to push its share price higher in choppy trading, opening with a fourth straight gain, and in less than 20 minutes, driven by volume, surged straight to a high of 72.8 yuan at 17 minutes, up 3.4 yuan, then stayed consolidating in a range up over 2%, also oscillating around up 2.5% intraday, with trading volume reaching over 73200 lots at 36 minutes, topping the sector with the most active trading.
Record Revenue and Institutional Buying, Short-Term Focus on Moving Averages
The Money Weekly research department noted that Musk said humanoid robot development is rapid but faces an urgent memory shortage to be resolved. In fact, memory supply and demand, after AI server volumes were released, also faces material shortages, pushing 4th-quarter memory prices up another 30%, driving domestic and foreign institutional investors to favor revenue and profit growth momentum for memory stocks in the 4th quarter.
Powerchip reported self-calculated September consolidated revenue of 76.65億元, up 9.36% month-on-month and up 94% year-on-year, a record high, and double growth for 7 consecutive months; cumulative revenue for the first 3 quarters was 522.1億元, up 52.5% year-on-year, the second-highest on record, growing for 3 consecutive years. As of the 27th close, foreign investors bought超 56012 lots, investment trusts bought超 4937 lots, major players bought超 59415 lots, and dealers bought超 1687 lots. Based on the intraday price of 71.3 yuan on the 28th, the share price has moved back above all moving averages, with the deviation from the 5-day to monthly lines in a normal range of 4.9% to -1.5%, and short-term trading can be conducted around the 5-day line.