Stabilization Measures Fuel Strong Index Rebound
Taiwan stocks rebounded on the 9th, boosted by the National Stabilization Fund launching its 10th market stabilization operation in history and the Financial Supervisory Commission imposing short-selling curbs. The TAIEX opened at 40347.28 points, up 645.64 points, then broke through 41000 points and 42000 points, hitting an intraday high of 42349.36 points, up 2647.72 points or 6.67%. It was last reported at 42041.55 points, up 2339.91 points or 5.89%, reclaiming 42000 points and the 5-day moving average, while the OTC index rose 6.03% to 322.36 points, potentially challenging the second-largest single-day closing gain on record.
Heavyweights Lead as Limit-Up Count Expands
Last Friday Taiwan stocks plunged 1873.08 points to close at 39701.64 points, falling below 40000 points. The National Stabilization Fund held an emergency committee meeting that afternoon, authorizing the executive secretary to deploy funds to stabilize the market, while the Financial Supervisory Commission simultaneously lowered the cap on intraday securities-lending sell orders and raised margin requirements for short sales. Today advancing issues reached 1663, with 224 hitting limit-up. MediaTek2454, Delta Electronics2308, Nan Ya Plastics1303, Largan Precision3008, Asia Vital Components3017, Hongjing7769 and Yageo2327 touched limit-up intraday, with 13 of 38 thousand-gold stocks touching limit-up, covering IC design, thermal solutions, memory, optical communications and electronic components.
Institutions See Bargain Hunting but Await Confirmation
Morgan Stanley U.S. chief equity strategist Michael Wilson noted that the U.S. stock correction since June this year is entering its final stage. Although AI tech stocks have faced selling pressure, positioning has already adjusted to a considerable extent, and the next 2 to 3 weeks present an opportunity to increase equity exposure, maintaining a year-end target of 8000 for the S&P 500. Taiwan stocks fell a cumulative 5510 points last week, down 12.1%, with a 20.6% pullback from the peak. Huanan Securities Investment Consulting noted that global high-performance computing (HPC) and advanced chip demand remains strong, suggesting attention to TSMC2330, foundry, semiconductor equipment and materials on dips, while other analysts favor AI quality stocks that were wrongly sold off without deteriorating fundamentals as negative divergence from the quarterly moving average widens.
However, Capital Securities Investment Consulting believes short-term technicals remain weak, and advises waiting for a bottoming signal before entering. The market suggests watching whether the index can hold above the 5-day moving average, whether foreign investors switch from selling to buying, and whether the Taiwan dollar can stop depreciating and rebound. Despite today's strong rebound on stabilization and short-selling curbs, a single-day surge is not enough to confirm a bull market restart, with institutional fund flows and AI-sector fundamentals to be monitored ahead.