Taiwan stocks narrow losses after breaking below 3.8萬 points
Taiwan stocks today (6th) plunged over 3,700 points in early morning trading, breaking below the 38,000-point mark in the largest point drop on record, before gradually narrowing losses, with bargain-hunting buying emerging in some ETFs in a bull-bear standoff. Bellwether TSMC (2330) rebounded from an early low of 2,020元 to 2,125元 intraday, narrowing its decline to 5.13%, on volume of about 8萬 lots.
0050 trades 71萬 lots, 2x leveraged pair totals over 241萬 lots
Yuanta Taiwan 50 (0050) fell to an early low of 87.55元 before recovering to 92.2元, up 5.31% from its low, on volume of 71.84萬 lots and turnover of 651.43億元. KGI Taiwan TOP50 (009816) traded 44.63萬 lots, recovering from a low of 13.2元 to 13.91元. Leveraged ETF trading was even hotter, with Capital Taiwan Weighted Positive 2 (00685L) trading 132萬 lots intraday and Yuanta Taiwan 50 Positive 2 (00631L) exceeding 109萬 lots, the two totaling over 241萬 lots, even as their prices plunged 9.68% and 9.79% respectively while volume surged.
Positive 2 ETFs saw sharp early premiums, converging by midday
Positive 2 ETFs showed clear premiums in early trading, with 00631L's premium approaching 25% shortly after the open and still at 5.59% at 9:09 a.m.; 00685L and Fubon Taiwan Weighted Positive 2 (00675L) also showed premiums of about 4.5% and 3% respectively. As the market gradually stabilized, premiums had converged to near zero by around midday, easing the early price dislocation.
Inverse 1 rises against trend as long and short funds enter together
Trading in other ETFs was also active, with CTBC Taiwan Income Active (00406A) trading 103.9萬 lots and Active Uni-President Taiwan Stock Growth (00981A) exceeding 42萬 lots; Yuanta Taiwan 50 Inverse 1 (00632R) rose 4.85% against the trend, off its early highs, on volume of 37.52萬 lots, showing long and short funds entering simultaneously. Heavy volume and rebounds from lows show dip-buying support emerging, but not enough to confirm a market bottom, and Positive 2 ETFs seek twice the daily return of their underlying index, so chasing at high premiums carries both market volatility and premium-convergence risk.