Taiwan’s stock market fell sharply; however, specialty chemicals outperformed with remarkable strength. Investors grew cautious as the Taiwan dollar strengthened against the US dollar. Consequently, fears of foreign exchange losses spread through the market. Additionally, the approaching Dragon Boat Festival holiday added to the subdued mood.
The Taiwan Capitalization Weighted Stock Index, or TAIEX, dropped 200.03 points. It closed at 21,336.54, while turnover reached NT$312 billion, or about US$10 billion. Notably, large-cap tech stocks led the decline.
For instance, TSMC lost 1.13% to NT$965. Meanwhile, Foxconn slipped 0.65% to NT$152. Furthermore, MediaTek tumbled 2.34%, ending at NT$946. As a result, the broader index suffered heavy pressure.
Moreover, other major stocks continued the downward slide. Asustek, Formosa Petrochemical, UMC, Novatek, and Yuanta Financial all dropped more than 2%. Even so, certain sectors defied the broader trend—especially specialty chemicals gained strong traction.
This strength followed Japan’s Asahi Kasei decision to halt shipments of photosensitive polyimide. As a result, local firms hoped for increased orders. In turn, Chung Hwa Chemical, Evermore, Everlight Chemical, Yuan Jen, Sunko Ink, and Yong Shun Chemical all hit daily trading limits.
Importantly, photosensitive polyimide, or PSPI, is a top-tier insulating material. It offers strength, heat resistance, and strong electrical properties. Moreover, electronics manufacturers use it for efficient circuit design. Thus, Asahi Kasei’s disruption offered a lifeline to Taiwan’s producers.
In addition, semiconductor substrate suppliers bucked the downturn. Mitsubishi Gas Chemical warned of shipment delays for bismaleimide triazine, or BT resin. This resin is as essential as PSPI in advanced chip packaging.
Because of rising AI, 5G, and EV demand, BT resin has become increasingly valuable. Therefore, ABF substrate makers saw renewed interest. Nan Ya PCB hit its daily trading limit. Likewise, Unimicron surged more than 6%, signaling growing optimism.
At the same time, printed circuit board makers gained momentum. Global Brands Manufacture closed at NT$98.2, setting a record high. It rose over 20% this week, with turnover exceeding 91,000 shares.
Meanwhile, financial stocks topped trading volume. CTBC, SinoPac, and Cathay Financial were the most active. Nonetheless, CTBC fell 5.77%, marking its third straight loss.
According to Cathay Securities analyst Tsai Ming-han, the drop looked like a normal correction. He pointed out that Taiwan’s currency strength mirrors a softer US dollar. Generally, this suggests underlying stability.
Looking ahead, Tsai said a market rebound is possible. If US markets remain calm and local volume increases, sentiment may recover.
Throughout the trading session, one phrase echoed clearly—specialty chemicals gained. As investors turned defensive, specialty chemicals gained helped anchor market confidence. Undoubtedly, in uncertain times, specialty chemicals gained offers both shelter and opportunity.
