Technology Earnings and IPO Move Market Funds
This week, major U.S. and Taiwan technology companies are reporting earnings one after another. In addition to profit performance, capital expenditure and cash flow are also market focuses, becoming the core issues driving recent market volatility. During the Taiwan stock market holiday, AI startup giant Anthropic filed for an IPO, prompting fund rotation in U.S. stocks, while market sentiment was affected by cash flow concerns surrounding major cloud service providers, causing sharp volatility in Taiwan stocks.
Pullback of Over Two Thousand Points From High, Popularity Rises Instead
According to institutional observers, Taiwan stocks hit a high of 49968.92 on October 6, then began a series of declines, with the TAIEX shedding a total of 2312 points since October. In contrast, listed Taiwan ETFs saw beneficiaries hit a new high, reaching 2380 ten thousand people, up 33 ten thousand from last week and up sharply by 117 ten thousand from the end of last month, showing strong fundamentals in Taiwan stocks attracting investors to buy on dips.
According to the latest statistics from the Taiwan Depository & Clearing Corporation, the 10 most popular Taiwan ETFs almost all posted positive growth compared with both last week and last month. Taiwan stocks fell more than they rose last week, yet beneficiaries of the 10 most popular ETFs all grew, showing investors were undeterred by volatility and instead increased investments during the correction. The 10 Taiwan ETFs with the most beneficiaries mostly saw growth of more than ten thousand people since the end of September.
Four Funds Add Over Ten Thousand in a Week, Seven Add Over Ten Thousand in a Month
Among the 10 Taiwan ETFs with the most beneficiaries, 4 added more than ten thousand people from the previous week, including Yuanta Taiwan 50(0050), Yuanta High Dividend(0056), KGI Taiwan TOP50 (009816), and Active Uni-President Taiwan Stock Growth (00981A). A total of 7 funds added more than ten thousand people from the end of last month, of which Yuanta Taiwan 50(0050), Yuanta High Dividend(0056), and KGI Taiwan TOP50 (009816) grew by more than ten thousand both week-over-week and month-over-month.
Valuation Pulls Back, Institutions See Long-Term Bull Market Intact
The KGI Taiwan TOP50 (009816) ETF research team said that over a longer horizon, the medium- to long-term bull market structure for Taiwan stocks has not changed, with 2026 EPS year-on-year growth still expected to post double-digit high growth, leading indicators continuing to move upward each month after correction, and Taiwan PMI further rising to 63.4 from 62.5 last month, remaining in expansion territory. After the correction, the Taiwan stock P/E ratio has fallen to below 17 times, returning to the upper edge of a reasonable range, offering an opportunity to build positions in batches to capture long-term growth in Taiwan stocks. All investments involve risk, funds may gain or lose, please read the prospectus carefully before subscribing, investors should carefully evaluate risks and bear the investment results themselves.