Earnings Season Focus on Cash Flow Drives Volatility
This week tech giants in Taiwan and the U.S. are reporting earnings one after another. In addition to earnings performance, capital expenditure and cash flow are also market focuses, and this has become the core issue driving recent market volatility. During Taiwan's holiday period, AI startup giant Anthropic filed for IPO, triggering fund rotation in U.S. stocks, while market sentiment was affected by cash-flow concerns around major cloud service providers, causing sharp volatility.
All Top Ten Most Popular ETFs Grow on Bargain Hunting
Despite sharp volatility in Taiwan stocks, the 10 most popular Taiwan equity ETFs almost all posted positive growth compared with last week and last month, showing strong Taiwan stock fundamentals attracting investors to buy on dips. According to the latest Taiwan Depository & Clearing Corporation data, among the 10 Taiwan equity ETFs with the most beneficiaries, 4 added more than 10,000 beneficiaries from the prior week, including 元大台灣50(0050), 元大高股息(0056), 凱基台灣TOP50(009816), and active 統一台股增長(00981A). A total of 7 added more than 10,000 from the end of last month, of which 元大台灣50(0050), 元大高股息(0056), and 凱基台灣TOP50(009816) grew by more than 10,000 both over the past week and over the past month.
October Drop of 2312 Points, Beneficiaries Hit New High
Institutional investors note Taiwan stocks hit a high of 49968.92 on October 6, then started a round of declines, with the TAIEX down 2312 points since October. In contrast, listed Taiwan equity ETFs saw beneficiaries hit a new high of 2380萬人, up 33萬人 from last week and up sharply by 117萬人 from the end of last month. Looking further at the 10 Taiwan equity ETFs with the most beneficiaries, most have added more than 10,000 beneficiaries since the end of September. Taiwan stocks fell more than they rose last week, yet beneficiaries of all top 10 most popular ETFs grew, showing investors undaunted by volatility and instead stepping up investment on price corrections to buy on dips.
P/E Back Below 17x Brings Opportunity
The 凱基台灣TOP50(009816) ETF research team said over a longer horizon the medium- to long-term bull market structure for Taiwan stocks has not changed, 2026 EPS growth is still expected at double-digit rates, leading indicators continue to rise monthly after revision, and Taiwan PMI further rose to 63.4 from 62.5 the prior month, remaining in expansion territory. After the correction, Taiwan stocks' P/E has fallen to below 17x, back to the upper edge of a reasonable valuation range, allowing staged deployment to capture long-term growth opportunities in Taiwan stocks. Investing involves risks, fund investment involves gains and losses, investors should read the prospectus carefully before subscription, prudently assess risks, and bear responsibility for investment results.