Opened Lower, At One Point Plunged Over 900 Points
Mixed earnings from US tech giants, coupled with market doubts about the return on massive infrastructure spending, dragged on Asian stocks. After the previous day's sharp rally, Taiwan stocks on Thursday 29th opened lower and moved lower, at one point plunging over 900 points intraday. Fortunately, low-level buying emerged into the close to ignite a recovery, with the index narrowing losses to end down 667.25 points at 46368.33 points, with turnover edging up to 7891.52億元. Local institutional investors noted that although the market swallowed the previous day's long red K-line and lost the quarterly line, support below at the quarterly line and a long lower shadow demonstrated resilience, with repeated basing expected near the quarterly line in the short term. Investors are advised to focus on defensive and mainstream groups with solid fundamentals and to respond cautiously to market volatility.
Weak Electronic Heavyweights, Financials Show Resilience
Observing the market structure, divergent performance among heavyweight stocks was the main reason for the index's intraday swings. Market leader 台積電2330 faced profit-taking, but the pullback on shrinking volume still held above the 5-day line and the previous day's bullish gap. In contrast, 聯電2303 and 台達電2308 hit new swing lows due to bearish alignment of short- and medium-term moving averages. Driven by safe-haven demand, financial stocks became a bright spot, with 富邦金2881, 中信金2891, 國泰金2882, and 元大金2885 holding firmly above all moving averages, while 第一金2892 even hit a new swing high.
Small- and Mid-Caps Pull Back, CCL Relatively Resilient
The over-the-counter market fell more heavily, with small- and mid-cap stocks pulling back markedly, with only the CCL group performing relatively strongly. 台光電2383 posted record third-quarter revenue and profit and held above the 5-day line, while 台燿6274 delivered strong EPS of 12.88元 with its share price rising against the trend. Among heavyweight and AI supply-chain names, 日月光投控3711 entered consolidation after a short-term surge and is expected to remain volatile until the bearish gap is filled. Memory and MLCC groups were lifted by buying into the close, including 華新科2492, 信昌電6173, 晶豪科3006, 十銓4967, and 創見2451 showing relative resilience, while volume performance in 穩懋3105, 智原3035, and 佳世達2352 is also worth tracking.
Weak Sub-Groups Require Strict Stop-Loss
Previously strong technology sub-groups turned weak, including optics' 大立光3008, semiconductor assembly and testing's 精測6510, IC substrate's 欣興3037, silicon wafer's 環球晶6488, quartz components' 晶技3042, optical communications' 光聖6442, and PCB's 金像電2368. If they fall below short-term moving averages, the rebound may be declared temporarily over, so strict stop-loss discipline is essential. Overall, the market will digest selling pressure near the quarterly line in the short term. Investors should closely watch technical support, prioritize targets with solid fundamentals, and control position levels to cope with high-level volatility.