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Is the 4,000-Point Pullback a Buying Opportunity? Analysts Eye November Rebound
Finance · Major Banks · economic_daily · 2026-10-24
After a sharp correction in the Taiwan stock market, analysts suggest the worst is over and recommend positioning in AI, conglomerate year-end plays, and financials.
What Happened
Market Correction: The Taiwan stock market has retreated significantly from its historical highs, shedding nearly 4,000 points and falling below the quarterly moving average. Despite the volatility, analysts believe the market has bottomed out and advise against excessive pessimism.
Short-term Headwinds: Investors are currently navigating several uncertainties, including persistent foreign selling, the upcoming U.S. midterm elections, and potential interest rate hikes by the Federal Reserve. These factors are expected to keep the market in a consolidation phase in the near term.
November Outlook: Market sentiment remains positive for November, supported by upcoming earnings releases from major companies and favorable historical seasonal trends. Analysts remain optimistic about the year-end outlook, projecting the index could reach between 55,000 and 60,000 points in the coming year.
Investment Strategy: Analysts recommend using the current market volatility to build positions ahead of a potential November rally. Key sectors identified for strategic allocation include AI-related stocks, conglomerate year-end window dressing plays, and the financial sector.