Taiwan Stocks Plunge Below Three Moving Averages, Institutional Investors Call for Buying on Dips

林林靖雯 財經主筆2026-11-01 16:21

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Taiwan stocks opened lower and moved lower on October 30, closing down 1156.5 points at 45211.83, losing the monthly, quarterly and half-year moving averages; institutional investors say AI demand remains solid and financials are highly defensive, supporting buying on dips.

US Stocks Lead Decline, Taiwan Drops Over 1,000 Points and Loses Three Lines

Affected by weaker-than-expected earnings from US tech giants and increased doubts over AI investment returns, Taiwan stocks opened lower and moved lower on Friday the 30th, falling to an intraday low of 44726.26 points, down 1642.07 points, with the weighted index closing at 45211.83 points, down 1156.5 points, losing the monthly, quarterly, and half-year moving averages.

Institutional Investors Say Electronics and Financial Fundamentals Remain Solid

Institutional investors stressed that fundamentals remain sound for electronics groups such as ABF substrates, system assembly and specialty chemicals, which also continue to be supported by diverse themes; financial stocks have demonstrated strong earnings defensiveness and resilience, with fundamentals still solid, though the筹码面 has recently been less favorable. Dahua YouLi High Dividend 30 (00918) manager Guo Xiucheng said that driven by strong AI industry demand, Taiwan's economic growth rates for 2026 and 2027 are estimated at 12.63% and 7.65% respectively.

Financials Enter Golden Period, High-Quality Concept Stocks Named

Guo Xiucheng pointed out that with highly growing macroeconomy, the financial industry is entering a golden period of simultaneous growth in operations and macroeconomy, with banks seeing continued loan expansion, widening spreads and booming wealth management business, life insurers benefiting from hot sales of investment-linked policies, and securities firms posting significantly higher self-reported earnings amid rising Taiwan stock volume and prices. Several high-quality financial stocks such as Cathay Financial (2882), CTBC Financial (2891), Yuanta Financial (2885) have shown defensive strength, while electronics groups such as Unimicron (3037), Nan Ya PCB (8046), Kinsus (3189), as well as Quanta (2382), Wiwynn (6669), Hon Hai (2317) also provide support.

Short-Term Volatility Calls for Regular Investing and Buying on Dips

Regarding strategy, Guo Xiucheng suggested that investment trusts have continued to overbuy while foreign investors have turned to selling, leaving a strong wait-and-see sentiment in the short term, but with listed companies' operations expected to keep rising in the 4th quarter and AI new products launching one after another for protection, once foreign selling eases or turns to net buying, Taiwan stocks have strong rebound potential, and investors need not panic excessively over short-term volatility, and can seize medium- to long-term bull market opportunities through regular fixed-amount investing or buying on dips. According to the Dahua Bank Investment Trust website, the latest top ten holdings of 00918 are Taishin Shin Kong Financial (2887) 7.69%, Evergreen (2603) 7.06%, ASUS (2357) 6.71%, E.SUN Financial (2884) 6.34%, CTBC Financial (2891) 6.04%, Mega Financial (2886) 5.21%, Wiwynn (6669) 5.19%, SinoPac Financial (2890) 4.88%, First Financial (2892) 4.87%, Wistron (3231) 4.8%.

FAQ

How did Taiwan stocks perform on October 30?

Taiwan stocks opened lower and moved lower, falling to an intraday low of 44726.26 points and closing at 45211.83 points, down 1156.5 points, losing the monthly, quarterly, and half-year moving averages, mainly due to weaker-than-expected earnings from US tech giants and doubts over AI investment returns.

Which groups are institutional investors optimistic about?

Institutional investors named ABF substrates such as Unimicron, Nan Ya PCB and Kinsus, system assembly such as Quanta, Wiwynn and Hon Hai, as well as financial stocks such as Cathay Financial, CTBC Financial and Yuanta Financial, saying fundamentals are sound with earnings defensiveness.

What is the suggested strategy for short-term volatility?

Guo Xiucheng suggested no need for excessive panic, and investors can use regular fixed-amount investing or buying on dips, and once foreign selling eases or turns to net buying, seize Taiwan stocks' medium- to long-term bull market rebound opportunities.