Index Plunges Below Six-Month Moving Average
Hit by declines in the four major U.S. stock indexes, Taiwan stocks came under heavy selling pressure right at the open on the 30th, at one point plunging more than 1,600 points intraday, and finally closed down 1,156 points at 45,211, a drop of 2.49%, with daily trading volume expanding to 877.7 billion yuan. The market not only fell below the 45,314 six-month moving average support, but also formed a weak pattern of three consecutive weekly declines and a monthly decline, with panic spreading through the market. Chip distribution was bearish, with the three major institutional investors selling a net total of 139.844 billion yuan, including net selling of 112.467 billion yuan by foreign and mainland investors and net selling of 51.37 billion yuan by dealers, with only investment trusts bucking the trend with net buying of 23.993 billion yuan.
Heavyweight Electronics Lead Declines as Funds Shift to Defensives
Heavyweight electronics stocks were the focus of selling, with TSMC closing down 45 yuan at 2,370 yuan, a drop of 1.86%. MediaTek and UMC both pulled back more than 3%, Delta Electronics and Walsin Technology hit limit-down, and Yageo also fell sharply by more than 7%. Market funds rotated toward defensive non-electronics groups, with shipping leaders Evergreen Marine and Wan Hai Lines both rising more than 4% against the trend, Yang Ming Marine gaining more than 2%, and telecom leader Chunghwa Telecom climbing to 160 yuan against the trend, setting a new closing high and becoming the support focus in the weak market.
Ruan Muhua Builds Positions in Batches While Keeping Cash in Reserve
Facing sharp volatility, Ruan Muhua said on Facebook that he adopted a gradual position-building strategy during the correction, rather than investing all his funds at once, first establishing basic positions while retaining cash for staged deployment. He started buying from 00927, also established positions in 00685L, and slowly entered TSMC, saying that if the market falls further he still has ammunition to add positions, while if the market rebounds he is already on board. He specifically reminded that entering the market does not mean the correction is over or that the index has bottomed, especially as 00685L is a leveraged product with inherently larger volatility, and investors should not ignore risks just because prices have fallen sharply. At this stage he is responding with staged buying, position control and cash reserves, and the sharing is only his personal strategy, not investment advice.