TSMC retains most shareholders despite share price tumble

Taipei, July 29 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) remained No. 1 in terms of the number of shareholders on the local stock market, despite the company's shares coming under heavy pressure last week, according to Taiwan Depository and Clearing Corp. (TDCC).

Data compiled by TDCC, which provides securities custody services in Taiwan, showed the number of TSMC shareholders rose 77,643 from a week earlier to about 1.41 million as of Friday, the largest among listed companies in the country.

While TSMC shares plunged 4.74 percent from a week earlier to close at NT$924.00 (US$28.17) on Friday, its number of shareholders rose.

Due to the plunge in its share price, TSMC's market capitalization dropped by NT$1.19 trillion in one week to NT$23.96 trillion on Friday.

As the most heavily weighted stock on the local market, TSMC's losses contributed about 374 points to the fall on the Taiex, the benchmark weighted index on the Taiwan Stock Exchange, which plummeted 750.05 points last week in the wake of volatility among tech stocks on U.S. markets.

The increase in TSMC shareholders came after more retail investors rushed to pick up the stock, buying on the dip amid optimism over its business outlook, market analysts said.

Out of the 1.41 million TSMC shareholders, TDCC data indicated, as of Friday 976,418 were odd lots trade shareholders, up 64,424 from a week earlier.

On Friday, when TSMC shares plunged 5.62 percent the volume of odd lots trade in the company's shares totaled about 9.84 million shares, up by almost 400 percent from Tuesday, in the session before the local stock market closed due to a typhoon on Wednesday and Thursday.

Odd lots trade aims to make it easier for retail investors to buy high-priced stocks in quantities of less than 1,000 shares. The mechanism has made TSMC shares and other high priced stocks more affordable to retail investors.

According to the TWSE, the volume of odd lots trade in TSMC shares on Friday is the sixth highest since the chipmaker was listed on Sept. 5, 1994 due to an upbeat about its operations.

After TSMC reported its highest ever net profit for the second quarter of NT$247.85 billion, with earnings per share at NT$9.56, the chipmaker forecast at an investor conference on July 18 that sales for the third quarter would range between US$22.4 billion and US$23.2 billion, with the median figure up 9.5 percent from a year earlier.

The chipmaker has also forecast its sales will grow 24-26 percent in U.S. dollar terms in 2024, an upgrade from a 21-26 percent increase forecast in April.

Analysts said U.S.-based consumer electronics giant Apple Inc. and artificial intelligence chip designer Nvidia Corp. are among the largest clients of TSMC, and it is worth closely watching the fluctuations of Apple and Nvidia shares, as they are expected to dictate the movement of TSMC shares.

As of Friday, Cathay MSCI Taiwan ESG Sustainability High Dividend Yield ETF came in second after TSMC with 1.32 million shareholders ahead of China Steel Corp., the largest steel maker in Taiwan, which had almost 1.30 million shareholders, according to TDCC.