U.S. Plunge Drags Taiwan Stocks Below 45000
Taipei stocks were hit by a plunge in U.S. technology shares today, opening down 177.3 points at 45034.53 points, with selling pressure expanding intraday to a low of 44399.1 points, plunging 812.73 points and falling below the 45000 integer mark. All four major U.S. indices closed lower last Friday, as earnings and outlooks from tech giants failed to ease market concerns about massive AI capital spending, with selling pressure emerging in semiconductor shares, the Nasdaq plunging 2.86% for its largest single-day drop since June, the Philadelphia Semiconductor Index falling over 7%, and Taiwan index futures falling 867 points in overnight trading.
Foreign Investors Sell for 3rd Straight Session, Investment Trusts Buy for 15th Straight Session as Institutions Diverge
The weighted index narrowed its decline led by gains in heavyweights such as MediaTek and Hon Hai, closing down 291.69 points, or 0.65%, at 44920.14 points, with trading volume reaching 7588.75 billion yuan, and the New Taiwan dollar depreciating sharply by 2.18 jiao. The three major institutional investors sold a combined 52.691 billion yuan in超sell, with foreign investors selling for a third consecutive trading day, cutting holdings by 73.52 billion yuan today, and investment trusts buying for a 15th consecutive trading day, adding 36.117 billion yuan today. Proprietary dealers ended two consecutive trading days of selling, turning from sell to buy with a net buy of 466 million yuan today, while proprietary hedging sold for a 17th consecutive trading day, cutting 15.754 billion yuan today.
Investment Trusts Concentrate on Financials as Heavyweights Diverge
The top five net buys by investment trusts were Taishin Shin Kong Financial, CTBC Financial, SinoPac Financial, E.SUN Financial and ASE Technology Holding in order, with financials occupying the top four spots and buying concentrated in the financial sector. The top five net sells were Shinkong Synthetic Fibers, AUO, Mega Financial, KGI Financial and Holy Stone in order, with Mega Financial and KGI Financial both financials, showing divergent moves within the same sector. Heavyweights diverged, with TSMC opening down 60 yuan at 2310 yuan, closing down 30 yuan, or 1.27%, at 2340 yuan, dragging the broader market down by about 317 points alone. MediaTek opened down 125 yuan at 3790 yuan, hit an intraday high of 4070 yuan, reclaiming the 4000-yuan mark, and closed up 55 yuan, or 1.4%, at 3970 yuan. Delta Electronics turned positive in late trading, closing up 20 yuan, or about 1.5%, at 1355 yuan.
Hon Hai Bucks the Trend Higher as OTC Market Closes Lower
Hon Hai hit an intraday high of 252 yuan, up over 2.6%, closing up 5.5 yuan, or 2.24%, at 251 yuan. Chairman Young Liu said on the 30th last Friday that AI industry development should be distinguished from stock market bubbles, and was optimistic that Hon Hai operations will continue to hit new highs next year, with annual revenue growth reaching double-digit percentages. The OTC index opened lower, down 2.04 points at 368.22 points, briefly turned positive intraday, but succumbed to selling pressure in late trading, closing down 1.02 points, or 0.28%, at 369.24 points, with trading volume reaching 1591.31 billion yuan. Today's top five stocks by volume were AUO, Innolux, UMC, Fulltech Fiber and Nan Ya Plastics, and the top five by value were TSMC, MediaTek, Delta Electronics, Nan Ya Plastics and Unimicron.