Gap-Up Open of More Than 1,000 Points
Taiwan stocks opened higher and moved higher in early trading on the 10th (10th), extending the rebound. Buoyed by across-the-board gains in the four major U.S. indexes and a strong 6.88% rebound in the Philadelphia Semiconductor Index, Taiwan stocks gapped higher, surging by more than 1,000 points in less than 1 minute after the open. The TAIEX opened at 42886.74 points, and as of 9:56 a.m. on the Zhishang morning, the index had climbed to 42996 points, up about 1300 points, or 3.2%, touching the 43000-point mark at the intraday high, with turnover of about 4365億元. The market showed a broad rebound, with gainers clearly outnumbering decliners.
Heavyweight stocks performed strongly. At about 10 o'clock, Delta Electronics surged by the daily limit to 1275 yuan. MediaTek rose 265 yuan to 3990 yuan. Quanta rose 5.5 yuan to 302 yuan. TSMC rose 35 yuan to 2265 yuan. Overall, the rally was led by electronics heavyweights, extending the previous session's 1960-point rebound.
Three Stages of the V-Shaped Reversal and Strong Stocks Named
Analyst Ye Junmin said in an investment morning note on the 10th (10th) that the National Stabilization Fund launched its 10th market-support operation, coupled with short-selling curbs. Despite foreign investors selling more than 90 billion yuan in a single day, Taiwan stocks still rebounded strongly, surging 1960 points, the second-largest single-day gain on record, closing at 41661 points. Taiwan stocks fell all the way from 49968 points to a low of 37837 points in this round, down 12131 points in total, or 24%, already a crash-level correction.
Ye Junmin believes that growth in the AI industry will only slow slightly by 2028 at the earliest, and fundamentals in 2027 have not changed. The decline was mainly caused by excessive market selling, and Taiwan stocks have already staged a V-shaped reversal after the oversold drop. He divides the V-shaped reversal into three stages: the first stage is buying in batches on oversold declines, the second stage is chasing after the V-shaped reversal is confirmed, and the third stage is seeking buying opportunities again on pullbacks and shakeouts after the V-shaped rally runs higher. He believes there will still be opportunities to position on pullbacks before Taiwan stocks break above 50,000 points. V-shaped strong stocks named in the second stage include National Stabilization Fund support targets TSMC, MediaTek, Delta Electronics, ASE, Hon Hai, Quanta, Nan Ya, as well as Fubon Financial, Mega Financial, Hua Nan Financial, First Financial and other electronics heavyweights and financial stocks; other groups cover IC design Global Unichip, Alchip, AP Memory, CCL EMC, Taiyao, Iteq, Dehong, Fuqiao, PCB Gold Circuit, Topoint, Taiflex, Jinju, Daliang, IC packaging and testing Xintec, Chipbond, Powertech, AMD-concept stocks Jentech, AVC, Fushida, Lotes, as well as ABF Unimicron, Nan Ya PCB, Kinsus, Zhen Ding-KY; in addition, display panels Innolux, AUO, CPO LandMark, Browave, LuxNet, TrueLight, Syuncore-KY, Zhongda-KY, Largan, as well as memory Nanya Technology, Winbond, Phison, ESMT, Etron.