FX.co ★ TAIEX Retreats from Record High, Remains Above 49,000

The TAIEX, Taiwan’s benchmark stock index, slipped 84 points, or 0.2%, to 49,739 in intraday trading on Wednesday, snapping a five-session winning streak as investors locked in profits after the market hit a record high a day earlier. The pullback was led primarily by weakness in electronic technology and technology services stocks.

Despite the decline, the index held above the 49,000 level for a third consecutive session during intraday trade, after closing at 49,823 on Tuesday. Market sentiment was weighed down by rising oil prices, which heightened concerns about inflation and the prospect of further interest rate hikes. Losses were limited, however, by a positive session on Wall Street overnight, where gains in tech-focused sectors helped cushion the downside.

The electronic technology subindex fell 0.5%. Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker and a heavyweight that accounts for more than 40% of the TAIEX’s total market value, eased 0.4% after advancing in the previous session. Among other major names, MediaTek declined 1.3%, Delta Electronics lost 3.4%, Hon Hai Precision (Foxconn) dropped 1.6%, and ASE Technology Holding also retreated 1.6%.