Taiwan Stock Market Swings Amid Heavy Institutional Buying

The Taiwan Stock Exchange saw sharp moves in early August. The weighted index surged to a record 44,611 points, then closed the day 170 points lower, while a week‑long rally added 1,106 points and pushed total market capitalization past NT$144 trillion. Foreign investors net bought about NT$20.2 billion and domestic institutional investors added roughly NT$94.1 billion, concentrating on memory chips, copper‑clad laminates, ABF substrates and AI‑cooling components. Semiconductor ADRs, including TSMC ADR, rose over 1 %, and memory‑related stocks such as Winbond and Nanya saw strong buying. ETFs performed well, with the 00685L “positive‑2” fund gaining over 100 % year‑to‑date. At the same time, foreign and mainland Chinese investors trimmed holdings in panel and memory stocks, adding volatility to the market. The combined activity highlights a market driven by sector‑specific capital flows and a cautious optimism in Taiwan’s high‑tech segment.