Taiwan Stocks Plunge Below Half-Year Line
Affected by declines across all four major U.S. stock indexes, Taiwan stocks faced heavy selling pressure after the open on the 30th. The weighted index plunged more than 1600 points intraday, and closed down 1156.5 points at 45211.83 points, a drop of 2.49%, with turnover reaching 8777.3 hundred million yuan. The market fell below the half-year moving average of 45314 points, with the weekly line closing lower for 3 consecutive weeks and the monthly line also closing lower, as market sentiment turned cautious. Financial expert Ruan Muhua chose to enter the market amid the decline, disclosing his trading statements via Facebook and announcing he had begun building positions gradually.
Institutional Investors Sell Net, Shipping and Telecom Relatively Resilient
Looking at institutional trading, the three major institutional investors sold a net total of 1398.44 hundred million yuan on the day, including net sales of 1124.67 hundred million yuan by foreign and mainland investors and net sales of 513.7 hundred million yuan by dealers, with only investment trusts bucking the trend with net purchases of 239.93 hundred million yuan, showing divergent fund flows. On the market, large electronics heavyweights were the focus of selling pressure, with TSMC falling 45 yuan to close at 2370 yuan, down 1.86%, MediaTek and UMC both falling more than 3%, Delta Electronics and Walsin Technology hitting limit-down, and Yageo dropping more than 7%.
In contrast, some shipping and telecom stocks were relatively resilient, with Evergreen Marine and Wan Hai Lines rising more than 4% against the trend, Yang Ming Marine gaining more than 2%, and Chunghwa Telecom closing at 160 yuan to hit a record closing high, becoming a bright spot supporting the market.
Ruan Muhua Builds Positions in Batches While Keeping Cash
Facing the sharp market correction, Ruan Muhua said he has decided to build investment positions in stages, targeting TSMC, as well as two ETFs: Capital Semiconductor Income 00927 and Capital Taiwan Weighted Index 2x 00685L. He revealed he has already bought 00927 first, has also begun building a position in 00685L, and is entering TSMC slowly, first establishing a basic holding while retaining cash. In his post he wrote: "If it falls further, I still have ammunition. If it goes up, I am already on board." He also stressed: "Starting to build positions today does not mean the correction is over or that this is the lowest point." He reminded that this round of correction must be treated very cautiously and cannot be taken as a bottoming signal. Regarding 00685L, he specifically reminded that it is a leveraged product with larger price swings, and position size and capital allocation must be managed carefully. He reiterated that his current approach is to "buy in batches, control position size, and keep cash," and that the public record is only to share his actions, not investment advice, maintaining a cautious stance on the outlook.