By Samir Al Khoury,
On Thursday, July 11, 2024, Taiwan’s TAIEX index surged to 24,416 points, marking its highest level ever. Today, it closed slightly lower at 23,997 points, reflecting a notable increase of approximately 34% since the beginning of the year. This growth outpaced major global indices including those of the US, Europe, China, Japan, and India.
Several technical and fundamental factors contributed to this remarkable performance:
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The Taiwanese Semiconductor Manufacturing Company (TSMC), the world’s largest electronic chip manufacturer, saw its share price peak at $193.47 on July 11, 2024, an all-time high. Currently, the stock is trading near $185 with expectations of continued upward momentum.
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Taiwan’s economic indicators exceeded expectations, with the manufacturing purchasing managers’ index rising to 53.20 points in June 2024, up from 50.90 previously. This marks the highest level since March 2022. Additionally, the unemployment rate dropped to 3.35% in May 2024, demonstrating strong economic resilience.
Technical indicators suggest potential support for further gains in the TAIEX index:
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Moving averages (20-day, 50-day, and 200-day) are showing upward trends, with the 20-day average above the 50-day average, and the 50-day average above the 200-day average.
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The Relative Strength Index (RSI) is currently at 62 points, indicating bullish momentum for the TAIEX index.
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The Moving Average Convergence Divergence (MACD) indicator is in a positive zone, with the blue line above the signal line (orange), suggesting favorable momentum.
These factors collectively underline optimism regarding the future trajectory of Taiwan’s stock market.
