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Taiwan Stocks Plunge Below 44K Mark as Foreign Investors Offload $100B
Finance · Investment Banks/Brokers · economic_daily · 2026-11-03
Taiwan's stock market faced a triple-threat sell-off, with the index dropping below 44,000 points as foreign investors offloaded over NT$100 billion in a single day.
What Happened
Market Sell-off: The Taiwan stock market experienced a severe correction yesterday, characterized by a triple-threat sell-off targeting cash flow, margin positions, and high-valuation stocks. The benchmark index plummeted 1,612.6 points to close at 43,307, wiping out NT$5.2 trillion in market capitalization.
Capital Outflows: Foreign institutional investors sold a net NT$107.3 billion, marking the eighth-largest single-day sell-off in history. While state-backed banks intervened with a net purchase of NT$30.1 billion, it was insufficient to offset the combined selling pressure from foreign and proprietary traders.
Margin Liquidation: Market volatility triggered a massive reduction in margin debt, which fell by NT$22.92 billion—the sixth-largest single-day drop on record. High-valuation stocks bore the brunt of the decline, with the number of 'thousand-dollar' stocks dropping to 43 as investors aggressively de-risked their portfolios.
Outlook: Analysts are now monitoring the NTD exchange rate, foreign selling trends, and international market stability for signs of a bottom. Despite the current turbulence, there is cautious optimism that capital may return once uncertainty surrounding the U.S. midterm elections dissipates.