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Taiwan Stocks Stumble Near 50,000 Milestone as Institutional Investors Sell Off
Electronic Technology · Semiconductors · economic_daily · 2026-10-07
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The Taiex index faced resistance near the 50,000-point mark, closing slightly lower as institutional investors offloaded NT$24.16 billion in shares.
What Happened
Market Volatility and Performance: The Taiex index struggled to break through the 50,000-point threshold yesterday, closing down 16 points at 49,806 with a reduced trading volume of NT$0.98 trillion. Analysts suggest that the market has reached a short-term peak and may require a consolidation phase to correct excessive deviations before attempting another rally.
Institutional Investor Activity: All three major institutional investor groups were net sellers, offloading a combined NT$24.16 billion. While foreign and domestic institutional investors continued their selling streaks, state-backed banks intervened with NT$13.4 billion in net buying to provide a floor for the market.
Sector Rotation and Stock Highlights: Tech heavyweights remained subdued, shifting market leadership to the financial sector and select traditional industries. While high-dividend ETFs reached new highs, the high-priced stock segment saw volatility, with notable declines in industry leaders like ASPEED and Clevo, despite gains in other tech components.
Outlook and Market Drivers: Despite short-term selling pressure, experts remain optimistic, citing strong ADR premiums for TSMC and favorable technical indicators. The index is expected to fluctuate between 49,000 and 50,500 points in the near term as investors monitor currency fluctuations and domestic capital flows.