Despite share price fall, TSMC shareholder number hits new high

Taipei, March 21 (CNA) The number of people holding shares of contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) hit a new high this week despite a decline in its stock price, according to the Taiwan Depository and Clearing Corp. (TDCC).

The number of TSMC shareholders rose to 2.46 million as of Friday, up 75,536 from a week earlier, TDCC data showed. The stock fell 1.34 percent during the same week to close at NT$1,840.00 (US$57.55).

The decline in TSMC's share price resulted from volatility in global tech stocks, which was driven by rising international crude oil prices as the United States' and Israel's war against Iran continued.

Dealers said the increase in TSMC shareholders largely came from retail investors buying TSMC shares through odd-lots trading, which allows purchases of fewer than the standard block of 1,000 shares and makes high-priced stocks more accessible.

According to the TDCC, the number of TSMC shareholders holding odd-lot shares rose by 65,773 from a week earlier to about 1.96 million as of Friday. The number of shareholders owning between 1,000 and 5,000 shares also increased by 8,681 to 412,254.

The number of large shareholders holding 1 million shares or more fell by five, however, to 1,513, the data showed.

Strong investor interest in TSMC stock was also seen earlier this week when TSMC went ex-dividend and the stock quickly returned to its pre-ex-dividend level as soon as the local market opened Tuesday.

When a stock goes ex-dividend, the amount of the cash dividend to be paid out on the previous year's or earlier quarter's earnings is deducted from the stock's previous day closing price before the start of trading.

TSMC began issuing quarterly cash dividends in 2019, replacing its previous annual payouts. Since then, the stock has returned to its prior ex-dividend level on the same day 21 times.

Analysts have said that investors remain willing to hold TSMC shares due to optimism over the company's growth prospects in the AI era, as global demand for its advanced technologies, including 3-nanometer process nodes, has remained robust.