908-Point Swing Ends Higher as Sell-Off Officially Tops 1 Trillion
Taipei stocks staged a sharp swing on the 27th, with an intraday high-low range of 908.78 points, closing up 54.8 points at 46096.23. Hit by Taiwan dollar depreciation, foreign investors accelerated their exit since October, while proprietary dealers also cut positions. The three major institutional investors' combined October sell-off in the centralized market officially topped 1 trillion at month-end, with futures short positions at one point topping 80000 contracts. Government funds bought for 12 consecutive days, with investment trusts also stepping in, helping the broader market close narrowly higher.
Primary Uptrend Intact, Eyeing 60000 Points
Senior analyst Du Jinlong said the market is only under short-term pressure from political election headlines and foreign-investor withdrawals, with Taiwan stocks still in the primary advance under wave theory. Once political uncertainty settles in early November, the traditional rally from Q4 through next year's Lunar New Year and Lantern Festival season will follow. Lunar New Year and Lantern Festival rallies have historically averaged 1500 to 1800 points of upside, with the index seen reaching 53000 to 60000 from February to May next year, and heading toward an 80000 target in 2028 in the long term, making sharp pullbacks buying opportunities.
TSMC Supported Below 2400; Three Heavyweights Named
Among heavyweights, Du Jinlong revealed he has placed staged limit buy orders for TSMC at 2420 and 2390, noting strong government-fund support below 2400, while foreign investors have raised its EPS estimates for the next two years to just over 210, with target prices even reaching 5000. MediaTek fell below the 4000 mark, down more than 20% from its high into oversold territory. Delta Electronics pulled back from a high of 2500 to the 1400 to 1500 range, a correction of nearly 40%, making both timely for building positions in stages.
Nanya Technology EPS Seen at 128; CCL Trio Resilient
Among small- and mid-caps, memory maker Nanya Technology won analyst upgrades, with next-year revenue seen growing 66.8% year-on-year, gross margin reaching 84.5%, and full-year EPS estimated at 128.01, giving it the strength to challenge for thousand-dollar-stock status, while Winbond and Macronix can also be held for a valuation repair. Among copper-clad-laminate names, Iteq was hit by rumors and selling pressure, with Elite Material showing the most near-term momentum and Taiwan Union Technology the long-term leader. Formosa Plastics Group unit Nan Ya Plastics benefits from asset revaluation and a surge in book value per share, making pullbacks opportunities to accumulate in stages.