Index Retakes Quarterly Line as All Three Major Institutions Net Buy
The Taiex rebounded strongly on the 28th, rising 939 points to close at 47035, moving back above the quarterly line at around 46398 and reclaiming the 47000 mark. Foreign and mainland investors, investment trusts, and dealers all net bought, for a combined net buy of NT$29.894 billion. Among them, foreign and mainland investors turned to a net buy of NT$15.922 billion, investment trusts posted a 12th consecutive trading day of net buying in the amount of NT$11.807 billion, and dealers net bought NT$2.165 billion, ending a 12-session selling streak. In TAIFEX net positions, the three major institutions increased net long positions by 2282 contracts to 2745 contracts, with foreign investors reducing net short positions by 1126 contracts to 84,917 contracts.
Foreign Investors Add Active ETFs and Panel Stocks as Selling Pressure Narrows
Looking at foreign investor buy and sell activity by stock, according to Taiwan Stock Exchange statistics, stocks bought over 10,000 shares by foreign investors included Active CTBC Taiwan Income 00406A, AUO, Active Uni-President Upgrade 5000403A, Winbond, Innolux, PSMC, CTBC Taiwan-Japan-Korea PCB 009828, UMC, Compal, Hon Hai, Inventec, Nan Ya, Capital Taiwan Select High Dividend 00919 and others, with positioning concentrated in active ETFs, panel stocks and OEM/ODM groups. In contrast, stocks reduced by more than 10,000 shares by foreign investors on the day were only Macronix, Taiwan Glass, and Pou Chen, showing a clear narrowing of overall selling pressure.
TSMC and MediaTek Face 14th Straight Day of Reductions
Foreign investors continued to trim heavyweight stocks, reducing TSMC by 3,175 lots on the day, for a 14th consecutive trading day of net selling in TSMC totaling nearly 156,000 lots. Foreign investors also cut MediaTek by 1,037 lots, also a 14th straight day of net selling, totaling 35,100 lots, showing foreign investors maintaining reductions in the two heavyweights in contrast to the broader market rebound.
Institutions See Pre-Election Low-Volume Consolidation With Support in Range
ChiFa Investment Advisory Vice General Manager Jung Yishen noted that ahead of the U.S. midterm elections in early November, stock market performance remains in low-volume consolidation, with the U.S. Federal Reserve set to announce its interest rate decision this week, hedge fund accounting settlements at the end of October, and some funds recently withdrawing from Asian equities back to U.S. stocks. He expects some funds could return to Asian stocks after the U.S. midterms, with strong short-term support for the Taiex in the 45000 to 46000 range. He also said foreign investors narrowed their reductions in the Taiwan spot market over the past 2 days, with TAIFEX net short positions falling below 85,000 contracts, and foreign investor stance has not remained bearish. Taishin Taiwan SME Active ETF fund manager Shen Chien-hung said the Taiex reached a historic high near 50,000 points in early October, but gains were concentrated in a few groups with fast rotation, and factors including U.S. Treasury yields and Fed rate moves still pressure equities, though market noise over the AI industry is a short-term impact while the long-term upward trend in corporate earnings remains unchanged.