tsmc weathers tariff concerns as massive sell-off hits taipei market

2025-03-26 tsmc

Taipei, Wednesday, 26 March 2025.
tsmc’s stock in taipei took a hit today, closing at nt$980, a nt$10 dip, or 1%. this downturn arose from market jitters over potential tariffs. compounding the issue, a late surge of 6,842 large sell orders intensified the downward trajectory. the decline occurred despite the general upward trend of major us stock indexes. nvidia and tsmc adrs experienced slight declines, further contributing to the negative pressure on tsmc’s stock.

market overview

The taiwan stock market faced a downturn, closing down 12 points at 22,260 [1]. This broader market decline occurred after an opening at 22,327 points, where it briefly surged over 100 points [1]. However, intraday trading saw the market reverse course, hitting a low of 22,235 points before closing at the slightly improved, but still negative, final figure [1]. These fluctuations reflect ongoing investor sensitivity to global trade policies and their potential impact on major tech manufacturers [1].

adr performance and tariff impact

Concurrently, tsmc’s american depositary receipt (adr) experienced a slight decrease of 0.1%, settling at $180.90 [8]. Despite this dip, the adr still trades at a 20.9% premium compared to its taipei counterpart [8]. This relative strength may indicate continued confidence from u.s. investors. However, the broader market sentiment is being influenced by concerns over potential tariffs, particularly those possibly involving u.s. president trump, whose policies have shown to be flexible in the past [1].

analyst perspectives and etf implications

Analysts suggest that the taiwan stock market’s struggle at the yearly line, coupled with investor hesitation ahead of the upcoming qingming holiday and evolving u.s. tariff policies, is dampening short-term investment appetite [1].永豐投顧 also advises a strategy of reducing holdings during rebounds, favoring defensive stocks with low risk and high dividend yields in the current market environment [1]. The fluctuations in tsmc’s stock are particularly impactful given its significant weighting in many market capitalization etfs [1].

etf performance

Several etfs with substantial tsmc holdings have experienced notable declines [6]. 元大台灣50 (0050) and 富邦台50 (006208) have decreased by 6.33% and 5.13%, respectively, over the last quarter [6]. Other etfs facing significant drops include 中信小資高價30 (00894), down 8.89%, 中信綠能及電動車 (00896), down 8.1%, 元大msci台灣 (006203), down 7.39%, and 國泰台灣5g+ (00881), down 7.03% [6]. These figures highlight the interconnectedness of tsmc’s performance with broader investment portfolios [6].

Bronnen

Stock Decline Tariff Concerns