Index Opens Low and Moves Lower, Electronics Heavyweights Under Pressure
Taiwan stocks opened low and moved lower on the 29th, with the Weighted Index closing down 667.25 points, or 1.42%, at 46368.33 points, as turnover expanded to 8213.76 billion yuan, while the OTC index weakened in tandem, falling 7.24 points to close at 387.37 points. Affected by mixed earnings reports from U.S. tech giants and market questions over infrastructure return rates, the electronics sector's share of turnover edged up to 80.46%, but selling pressure was concentrated in heavyweight stocks. Dragged by after-hours weakness in Alphabet and results from 三星, index leader 台積電 fell 0.41%, while 聯發科 and 台達電 dragged the index by 91.98 points and 54.85 points respectively, and optoelectronics and computer peripheral stocks 玉晶光 and 大立光 also faced profit-taking pressure.
Financials and Biotech Resist Decline, Institutional Investors Buy on Dips
Despite pressure on electronics heavyweights, defensive financial insurance and biotech medical sectors showed defensive resilience. Financial insurance stocks rose 1.05% against the trend, with 第一金 surging 3.86% to become a major support for the index. Biotech medical stocks were also relatively resilient, with 大甲 jumping 10% and 科妍 rising 9.91%, showing a clear concentration of funds. In terms of chips, the three major institutional investors bought a net 32.442 billion yuan combined, with foreign investors and investment trusts both on the buy side, indicating that although there is short-term profit-taking pressure, buying support remains amid capital-driven moves, providing investors an opportunity to review fundamentals.
Brokerages Name High-Return Potential Stocks
Amid the volatile consolidation pattern, research reports on listed companies by domestic institutional investors screened for focus stocks with high potential returns recommended by brokerages over the past five days. Among them, networking giant 智邦 closed at 1755 yuan, with an average target price as high as 3500 yuan and a potential return of 99.4%, drawing the most attention. Equipment maker 鴻勁 closed at 5190 yuan, with a target price of 8925 yuan and a potential return of 72.0%. Cooling indicator 奇鋐 closed at 3105 yuan, with a target price of 5200 yuan and a potential return of 67.5%, ranking the top three in potential returns, with fundamental support and upside potential.
Stage Purchases to Capture Rebound Opportunity
In addition, IC testing firm 穎崴 has a target price of up to 7500 yuan with a potential return of 61.1%, 台達電 has a target price of 2325 yuan with a potential return of 57.1%, and CCL leader 台光電 and 聯亞 were also named by institutional investors as having strong fundamental support. Institutional investors suggest investors can take advantage of the short-term technical recovery to select potential targets with strong institutional consensus and capture the subsequent market rebound through staged purchases. Investors should still carefully assess risks and be solely responsible for investment results.