The Taiwan stock market opened higher and continued to rise yesterday (10th), fueled by the three major institutional investors. The share price of TSMC (2330) remained strong, pushing the index to a new high. The market even witnessed 18 stocks hitting the 'thousand-dollar' mark. Foreign institutional investors reached their third-highest buying amount of the year. The weighted index surged by 451 points to close at 22,242, with trading volume increasing to NT$4.027 billion, bringing it closer to the yearly average.

Positive developments from the US-China discussions in London continue to boost market sentiment, alongside TSMC's robust performance that fuels the bullish spirit. The electronics sector rose by 2.8%, with AI stocks led by TSMC making significant gains. Other groups like renewable wafers, glass substrates, CoWoS, and silicon photonics also performed well.

With the backing of foreign investment, TSMC closed at NT$1,045, up NT$40, marking a 3.9% increase and contributing approximately 323 points to the index. Other AI-related stocks such as MediaTek, Hon Hai, and Quanta also saw price rises, key to pushing the index to new heights. Stocks hitting the 'thousand-dollar' mark had more gains than losses, with Kang Pei hitting NT$1,005 at one point but closing down NT$21 at NT$969. The number of stocks in this category remains unchanged at 17.

The leading stock, Xinhua, surged by 6.3% under the recommendation of foreign institution Morgan Stanley, while Li Wang rose by 5.1%, and both Ying Wei and Hong Su experienced gains of over 4%. In terms of market dynamics, the three major investors collectively bought NT$521 billion, with foreign investors contributing NT$399.2 billion, the third-highest single-day buying amount of the year. The short position in futures decreased by 1,456 contracts to 37,131, showing a bullish sentiment in both stock and futures markets. Investment trusts purchased NT$32.2 billion, while proprietary traders bought NT$89.5 billion. However, the eight major public sector banks adjusted their positions by selling NT$111.4 billion.

Fubon Investment's Vice President Huang Wenqing and Yuanta Investment's Senior Manager Tang Qiguo noted that the market has a positive outlook regarding US-China tariff negotiations, coupled with positive signals from TSMC's shareholder meeting and May revenue announcements. Since May, foreign investors have begun to exhibit a buying trend, causing the index to rise, with trading volume gradually increasing. While margin financing is limited, there is a short-term bullish outlook for breaking through the yearly average, but subsequent attention must be paid to tariff policy changes.