Opened Higher Then Moved Lower, Accelerated Selloff After 11 O'clock
Taiwan stocks opened at 43449.45 points on November 4, surging to an early high of 43741.54 points, up 434 points from the previous close of 43307.54 points. The index remained above 43648 points in early 9 o'clock trading, turned from positive to negative after 9:30, saw brief resistance at 10 o'clock, then widened losses after 10:30, with an accelerated selloff after 11 o'clock. As of 11:43, the weighted index reported 42022.77 points, down 1284.77 points, a decline of 2.97%, with an intraday low of 41948.51 points, breaking below the 42000-point integer level, retreating 1793.03 points from the day's high, with cumulative turnover reaching 6856.78 hundred million NT dollars. The above is intraday market movement, not the final closing price.
Heavyweights Lead Declines, Institutional Chips Lean Bearish
Heavyweight stocks weakened across the board, with TSMC falling NT$50 to NT$2245, a decline of 2.18%, breaking below the NT$2300 level; MediaTek falling NT$190 to NT$3485, a decline of 5.17%; Hon Hai falling NT$7 to NT$238.5, a decline of 2.85%; Quanta falling NT$11.5 to NT$300, a decline of 3.69%. Financial heavyweights were under pressure at the same time, with Fubon Financial falling 0.97% and Cathay Financial falling 1.77%. Market doubts heated up over whether huge AI-industry capital expenditures can translate into profits, and coupled with the earlier correction in U.S. technology stocks, the electronics sector faced selling pressure. On November 3, Taiwan stocks plunged 1612.60 points, with the three major institutional investors selling a combined net 1464.56 hundred million NT dollars, of which foreign and mainland investors sold a net 1073.06 hundred million NT dollars and dealers sold a net 590.55 hundred million NT dollars, with only investment trusts buying a net 199.05 hundred million NT dollars. Foreign investors have sold net for 4 consecutive trading days, reducing holdings by about 3531 hundred million NT dollars cumulatively. The direct trigger for the accelerated decline after 11 o'clock remains to be further confirmed.
Divergence Between Strong and Weak Stocks, Watch Three Indicators Ahead
Some individual stocks still bucked the trend and strengthened, with Jie Xun and Guanghuan Ke both rising 10%, ASRock rising 9.98%, Hua Jing rising 9.95%, Yongqing rising 9.91%, and Nan Ran, Leadtek, Sanfu Chemical, Dongqing Technology and Dajia all rising over 9%, with China Qing, Yongqing, Dongqing Technology and other computer and server-related stocks contrasting with the market's heavyweight stocks. Among weak stocks, Quanxin and WIN Semiconductors both fell 10%, Walsin Technology fell 9.98%, King Slide plunged NT$920 to NT$8320, a decline of 9.96%, Shuangjian fell 9.96%, ESMT fell 9.90%, Auras fell 9.85%, and Guanxi Dian, VisEra and Utechzone also fell nearly 10%. Calculated from the November 2 close of 44920.14 points, the maximum cumulative drop over two trading days reached 2971.63 points, a decline of about 6.61%. Ahead, watch whether 42000 points can be reclaimed, whether TSMC and MediaTek stop falling, and changes in foreign-investor selling pressure and margin financing chips. Today's closing level, trading volume and the three major institutions' net buy/sell data will serve as references for judging a bottom.