Intraday Plunge of Over 3700 Points Sets Record
Affected by U.S. midterm election results deepening concerns over AI investment, Taiwan shares opened down nearly 3800 points on the 6th, falling to an intraday low of 37837 points, a recent low, at one point collapsing over 3700 points to set the largest intraday point drop in history, and falling below the 38000-point mark. Losses narrowed by the close, ending down 1873 points at 39701 points, falling below the 40000-point mark. From November 2 to 6, Taiwan shares fell a cumulative 5510 points, down 10267 points from this year's high of 49968 points, a decline of 20.55%, showing明显不足 market investor confidence.
National Stabilization Fund Authorizes Market Support for 10th Time
In response to sharp recent volatility in Taiwan shares, the National Stabilization Fund convened its 131st extraordinary committee meeting at 2:30 p.m. today, and after discussion and consensus resolved to authorize the Executive Secretary to deploy funds as conditions warrant to carry out market stabilization tasks, marking the 10th time the National Stabilization Fund has supported Taiwan shares. The committee considered that uncertainty in the international political and economic situation remains high, and deemed the situation stipulated in Article 8 of the Regulations for the Establishment and Administration of the National Financial Stabilization Fund to be present, namely that significant domestic or foreign events and large movements of international capital have significantly affected public confidence, giving rise to disorder in capital markets and other financial markets or concerns of harm to national stability, and therefore made the authorization decision.
Foreign Investors Continue Net Selling Despite Sound Fundamentals
The National Stabilization Fund said that after the U.S. midterm elections, U.S. stocks and major Asian stock markets fell sharply in tandem, with Taiwan shares falling 12.19% this week, second only to the PHLX Semiconductor Index decline of 15.7%. Taiwan shares are dominated by high-tech stocks and move closely with the U.S. PHLX Semiconductor Index, causing the domestic market to fall in tandem. Continued net selling by foreign investors deepened the decline, with cumulative net selling by foreign investors in October reaching New Taiwan dollars 9943.16 hundred million, a record single-month high, and continued net selling in November, with cumulative net selling of 5244 hundred million as of November 6. The National Stabilization Fund stressed that the country's economic fundamentals remain sound, but market confidence is明显不足 in the short term, and it will carry out market stabilization tasks as conditions warrant.