Benchmark Index Up Over 400 Points Early Then Turns Negative and Plunges
Taiwan stocks saw violent volatility on November 4. The weighted index rose over 400 points in early trading, then selling pressure emerged and it turned from gains to losses, with the intraday drop exceeding 1400 points. Low-end buying then returned and drove the index back up over 1000 points. It closed at 42948, down 358 points, with an intraday high-low range of 1885 points and turnover exceeding 1.1 trillion yuan, as bulls and bears battled fiercely.
Tech Stock Correction and U.S. Midterm Elections Weigh on Confidence
Investment fan page "Chip Guy Ge" analyzed that in addition to the continued correction in technology stocks, the U.S. midterm election results were also a market focus. The Democratic Party retook the House of Representatives and flipped the Senate, and U.S. President Trump may face more congressional negotiations for major policies in the future, and policy uncertainty may continue to affect market confidence.
0050 Falls Below 100 Yuan, 00981A Rebounds Over 6% From Low
Yuanta Taiwan 50 (0050) fell to an intraday low of 97.55 yuan and closed at 99.85 yuan, falling below the 100 yuan mark again, showing large-cap heavyweights also face correction pressure. 00981A fell below the annual line 240-day moving average intraday to a low of 23.69 yuan, and rebounded with the broader market to close at 25.14 yuan, up 0.96%, rebounding over 6% from its intraday low, becoming the focus of the day.
Managers Add 7 Stocks, Focus on Semiconductor Sector
00981A managers did not明显 pull back during the volatility, with a total of 7 stocks increasing their shareholdings on the day and none decreasing. Among them, TSMC (2330) increased by 805 lots, up 5.57%, ASE Technology Holding (3711) increased by 1463 lots, a change of 9.47%, with combined purchases of the two exceeding 2.7 billion yuan. In addition, it added Tong Hsin Electric (6271) by 100 lots, MediaTek (2454) by 137 lots, Global Unichip (3443) by 27 lots, Taiwan Union Technology (6274) by 50 lots, and Asia Vital Components (3017) by 39 lots, continuing to deploy in semiconductor packaging and testing, wafer foundry, IC design and AI cooling sectors, capturing AI supply chain growth opportunities.
Buying on Dips Does Not Mean Bottoming, Risk Control Advised
Chip Guy Ge reminded that managers buying on dips does not mean stock prices will rebound immediately, nor does it confirm the market has bottomed. 00981A has corrected consecutively recently and the annual line was once broken below, and whether it can stand firm again remains to be tracked. Overall, the extreme pattern of sharp gains, sharp declines and then a rapid rebound reflects that capital and confidence remain highly contested, and even a strong intraday rebound does not mean the correction is over. Investors should watch for stabilization signals in technology stocks, whether 0050 can return above 100 yuan and 00981A holdings and annual line performance, and pay attention to position levels and risk tolerance, preserving funds and controlling risk.