Taiwan Fund Monthly Insights - April, 2024
May 31, 2024The Taiwan market was rather volatile during the month of April, lacking a clear trend. Technology companies in the United States generally exceeded market expectations, while the pace of capital expenditures (CapEx), particularly in artificial intelligence (“AI”), continued to be strong. However, together with the elevated valuations, some companies in Taiwan did not meaningfully express their direction for the coming year, which fueled market volatility. The Taiwan TAIEX Total Return Index, (the “Benchmark”) fell 1.15% in April 2024, in US dollar terms, with Information Technology and Communication Services being the poorest performing sectors. Within the Information Technology sector, Semiconductors & Semiconductor Equipment and Technology Hardware & Equipment were the poorest performing industry groups. In the Communication Services sector, the downturn was generally driven by the Telecommunication Services industry group. During the month, the best two performing sectors were Real Estate and Industrials. Within the Industrials sector, the Transportation industry group was the main contributor to the sector performance.