The Taipei stock market closed at 21,660.66 points last week, gaining 313 points and ending a streak of losses. If it can effectively breach the resistance at 21,700 points with the aid of the US stock market's positive influence this week, it may challenge previous high points.

An analysis of the operations by the three major institutional investors shows that foreign investors sold a net of NT$603.85 billion, self-operated traders sold a net of NT$137.55 billion, and domestic institutional investors were net buyers at NT$284.94 billion, contributing to a total net selling of NT$456.45 billion among the three institutions. Among the top ten stocks sold, the four largest, including KGI Securities, UMC, Innolux, and Yuanta Financial, saw excess selling of over 100,000 shares each.

According to Allianz's Taiwan stock team, although the market is currently in a consolidation phase, it is awaiting clarifications on several variables. The AI theme remains central to the bullish sentiment, while adjustments to ETFs related to financial and traditional industry stocks serve as the main influencers.

Currently, the market's response to US tariffs is cooling, but a return to the fundamentals indicates that equal tariffs may disrupt corporate procurement and inventory policies. Investors should pay attention to dividend yields, corporate commentary for the second half of the year, and trends related to AI, viewing the accumulation of quality stocks at lower prices as a better strategy.

Moreover, important factors to keep in mind include the recent ETF adjustments, the impacts of dividends, and how companies manage currency fluctuations and the potential cost-sharing implications due to tariffs. In non-electronics sectors, while many stocks are recovering, traditional industry stocks are mostly still absorbing the impact of US tariffs and exchange rate risks, with individual stock performance remaining key. Tourism, travel, and food sectors are already attracting attention due to recent currency trends.

Looking ahead to this week, royalty king TSMC and stock king Xinxing will pay dividends respectively on June 12 and 13, with TSMC expected to distribute NT$4.5 and Xinxing NT$52; these dividends will influence short-term market behavior.