Benchmark Plunges Over 1,000 Points as Electronics Heavyweights Come Under Pressure
On October 30, Taiwan stocks faced heavy selling pressure, at one point plunging over 1600 points intraday and falling below the 45,000-point mark, closing down 1156.5 points at 45211.83 points. Delta Electronics (2308) and AUO (2409) both hit limit-down, TSMC (2330) fell 2.07%, with electronics heavyweights becoming the focus of institutional selling and market volatility intensifying sharply.
Funds Seek Shelter as Container Trio Rises in Unison
Funds rotated into the shipping sector as a hedge, with the container trio rising together. Wan Hai (2615) rose 4.35% to close at 120; Evergreen (2603) rose 4.02% to close at 271.5; Yang Ming (2609) rose 1.5 to close at 63.5, up 2.42%, showing resilience amid the market plunge and emerging as a safe-haven indicator.
Geopolitical Risks and Strike Support Freight Rates
Recently, escalating tensions in the Middle East, with successive reports of container vessels and ships attacked in the Strait of Hormuz, have raised regional shipping risks and operating costs, driving a rebound in Europe-route freight rates. Local institutional analysis noted that the October 30 European port strike lengthened vessel waiting times, causing loading delays and scheduling disruptions, with subsequent chain congestion effects reducing effective capacity supply, keeping container freight rates firm in the off-season with short-term support.
Alliance Red Sea Resumption and Institutional Rating
ROC National Association of Shipowners Federation Chairman Tsai Feng-ming said at the members' congress that from the fourth quarter into next year the industry still faces multiple uncertainties including the Middle East situation, major route security, and international trade policies, with vessel capacity allocation, route planning, and decarbonization rules all major challenges. Yang Ming noted that its PA shipping alliance expects to resume 1 Northwest Europe and 2 Mediterranean services via the Red Sea by the end of 2026, accounting for about 30% to 40% of the alliance's greater-Europe capacity. Local institutions believe that with phased resumption and safety risks not yet fully resolved, the short-term impact on freight rates will be limited; looking to 2027, even with new vessel deliveries adding supply pressure, carriers can still adjust capacity through blank sailings and route adjustments. The institution forecasts Yang Ming 2026 and 2027 after-tax EPS at 10.30 and 6.83 respectively, maintaining a Buy investment rating with a target price of 76.