Taiwan Rebounds Above Quarterly Moving Average
Taiwan stocks surged 939.35 points on the 28th to close at 47,035.58 points, up 2.04%, retaking the quarterly moving average of about 46,398 points and the 47,000-point integer mark. After plunging more than 3,200 points over the previous two weeks, the strong rebound brought a counterattack for investors who stayed invested. The three major institutional investors posted combined net buying of NT$298.94 hundred million, and the number of high-priced stocks above NT$1,000 rose to 49. Based on the closing price, Taiwan stocks are about 6.3% away from 50,000 points.
Bullish and Bearish Outlooks for the Market
Market confidence in the outlook recovered in tandem. Veteran analyst Du Jinlong stressed that the short-term correction does not mean the end of the bull market, and maintained his view that Taiwan stocks could challenge 53,000 points to 60,000 points in 2027. Pegatron Chairman Tung Tzu-hsien noted that if TSMC earnings per share exceed NT$100 this year, at the current share price of more than NT$2,400, the price-earnings ratio is only just over 20 times, so long-term fundamentals remain healthy. However, some analysts reminded that margin balances across the market remain above NT$6,000 hundred million, chips still need to be digested, and the short term may still move higher gradually in a volatile consolidation pattern.
All Large Active ETFs Close Higher
Large active ETFs led the rebound. According to CMoney statistics, as of October 28, all of the top ten domestic active ETFs by scale closed higher, with an average gain of about 3.6%, of which 9 rose more than the broader market's 2.04%. The Active Fuh Hwa Future 50 (00991A), managed by Lu Hongyu, rose 4.62%, about 2.26 times the broader market gain, the highest among the 4 funds with scale over NT$500 hundred million, and higher than the 4.56% of Taiwan-wide largest active Uni-President Taiwan Growth (00981A). Among the top ten by scale, Active Capital Technology Innovation (00992A) ranked first with 4.80%, and 00991A ranked second. 00991A has reached NT$714 hundred million in scale.
AI Supply Chain Leads the Rebound
By holdings, 39 of the 50 stocks held by 00991A closed higher on the 28th, with Kinsus hitting the daily limit, Nanya Technology surging 8.16%, and AI supply-chain stocks such as MediaTek, EMC, Jentech and Aspeed rising sharply together. The fund holds about 30% in PCB, ABF substrate and copper-clad laminate related holdings, plus memory and thermal segments. Institutions noted that tight supply-demand for DRAM and high-end ABF substrates is expected to continue into 2027, with related industry fundamentals still supported. The correction over the previous two weeks mainly reflected short-term chip adjustment, not a reversal in AI industry demand.