Benchmark Plunges as ETF Trading Surges
Taiwan stocks plunged 1612.60 points on November 3, closing at 43307.54, down 3.59%. As the broader market weakened, the ETF market saw heavy-volume trading. According to Taiwan Stock Exchange data for the top 20 securities by volume on November 3, Actively Managed CTBC Taiwan Income (00406A) recorded trading volume of 1,608,938,491 shares, equivalent to about 1.6089 million lots, ranking first among listed securities, with turnover of about NT$13.060 billion. It opened at 8.3, with a high of 8.35 and a low of 7.96, closing at 7.98.
Yuanta Taiwan 50 (0050) recorded trading volume of about 302.40 million shares, equivalent to about 0.3024 million lots, with turnover of about NT$30.759 billion, closing at 100.6 and touching a low of 100.5. KGI Taiwan TOP50 (009816) recorded trading volume of about 200 million 6547 ten-thousand shares, equivalent to about 0.2655 million lots, with turnover of about NT$4.040 billion, closing at 15.04. Trading volume expanded simultaneously for all three ETFs, with 00406A breaking above 1.60 million lots to become the market focus. However, expanded volume only represents the scale of trading between buyers and sellers and cannot be directly interpreted as investors broadly buying on dips.
00406A Ex-Dividend Distribution of 0.138, Closes Below Reference Price
00406A distributed 0.138 per beneficial unit, with November 3 as the ex-dividend date and November 27 as the distribution payment date. According to Taiwan Stock Exchange ETF dividend data, the ex-dividend reference price was 8.44. It fell to a low of 7.96 during the session and closed at 7.98, 0.46 below the ex-dividend reference price, or about 5.45%. The fund has continued its recent hot trading trend, with daily volume breaking above 1.60 million lots. Going forward, besides watching whether volume continues, changes in the number of beneficiaries must also be monitored to further judge whether funds continue to build positions.
Government-Linked Buying Meets Heavy Institutional Selling
In terms of market筹码, according to buying and selling statistics for the eight major government-linked banks, on November 3 00406A was net bought 115,714 lots for about NT$938 million; 0050 was net bought 26,784 lots for about NT$2.725 billion, showing some government-linked funds positioning amid market volatility. However, data on the three major institutional investors pointed in a different direction. In 00406A, foreign investors net sold 164,003 lots, dealers net sold 977,521 lots, and investment trusts net traded 0 lots, for a combined net sale of 114 ten-thousand 1524 lots by the three major institutional investors.
Overall, in other words, although the eight major government-linked banks bought 00406A, institutional investors as a whole still showed heavy net selling, with the market showing heavy-volume turnover between different pools of capital rather than one-sided buying. As Taiwan stocks plunged, trading volume expanded simultaneously for ETFs including 00406A, 0050 and 009816. Going forward, volume continuity and changes in institutional筹码 must be watched to judge the direction of funds.