Taiex Falls Below 42000, Down 16.37% in Recent Month
Affected by the pullback in global technology stocks, AI valuation concerns, and continued foreign investor withdrawals, Taiwan stocks plunged 1374.19 points today (5th) to close at 41574.72, falling below the 42000 mark. Compared with the early-October high of 49712.04, the index has fallen 8137.32 points in just about one month, a drop of 16.37%, with heavy selling pressure.
Foreign Investors Sell for 6 Consecutive Sessions, Withdrawing Over 1.4 Trillion; Investment Trusts Buy for 18 Consecutive Sessions
According to TWSE statistics, foreign investors sold a net 1024.61 hundred million yuan today, marking 6 consecutive sessions of net selling, with daily net selling exceeding 1000 hundred million yuan in the last 3 trading sessions. Foreign investors have withdrawn a total of 6144.71 hundred million yuan over 6 consecutive selling sessions, including 4331.88 hundred million yuan sold since November alone; adding October net selling of 9943.17 hundred million yuan, cumulative net selling from October to date has reached as high as 1 trillion 4275.05 hundred million yuan. Investment trusts bucked the trend and added 225.32 hundred million yuan, buying for the 18th consecutive trading session; dealers sold a net 435.27 hundred million yuan, and the three major institutional investors together sold a net 1234.57 hundred million yuan, with domestic and foreign investors clearly diverging.
TWSE: Taiwan Stocks Relatively Resilient, Fundamentals Sound
Facing consecutive sharp declines, the TWSE voiced confidence, stressing that Taiwan's economy and corporate fundamentals remain sound. As of yesterday (4th), Taiwan stocks had gained a cumulative 48.29% so far this year, leading major global stock markets. Compared by each market's highest closing index this year, Taiwan stocks have retreated 13.8%, less than the 29.83% for the U.S. Philadelphia Semiconductor Index, 37.64% for South Korea's KOSPI, and 14.06% for the Nikkei 225 Index, showing relative resilience. In addition, average daily turnover in the centralized market this year is nearly 1 trillion yuan, with liquidity still ample.
Corporate Profit Growth, Stronger Monitoring and Risk Disclosure
Listed companies posted September revenue of 6 trillion 3402 hundred million yuan, up 43.69% year-on-year; cumulative revenue for the first three quarters was 46 trillion 9593 hundred million yuan, up 38.61% year-on-year; first-half after-tax net profit was 3 trillion 4377 hundred million yuan, up 136.7% year-on-year, reflecting continued growth in operations and profits. The Financial Supervisory Commission recently said that earnings reports from global technology companies and heightened geopolitical uncertainty have intensified market volatility, and has required the TWSE and Taipei Exchange to closely monitor changes in global financial markets. The TWSE stressed that it will continue to strengthen market surveillance and risk management, urge listed companies to disclose material information in a timely manner, encourage communication with investors through investor conferences, and has launched the Taiwan Stock Dashboard integrating margin financing, collateral maintenance ratios, defaults, and revenue information, reminding investors to carefully assess risks and return to fundamentals and long-term investment value.