economy
TSMC shares jump to record high as Taiwan eases single-stock investment caps for funds
TSMC, whose shares had a hit a record high on Thursday as well, last week reported a 58% increase in first-quarter profit.
TL;DR
- TSMC shares hit a fresh all-time high after Taiwan announced plans to loosen single-stock investment limits for funds.
- The revised framework permits domestic equity funds and actively managed ETFs to allocate up to 25% of assets to a single listed firm with a weighting above 10% on the Taiwan Stock Exchange.
- Previously, fund managers were capped at allocating 10% of their net asset value to any single company.
- TSMC reported a 58% increase in first-quarter profit, marking its fourth consecutive quarter of record profits.
- The company benefits from high demand for chips in artificial intelligence and consumer gadgets, with Nvidia now its largest customer.