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16 Stocks Backed by Institutional Buying Signal Potential Rally for Taiwan Market

Finance · Financial Conglomerates · economic_daily · 2026-09-04

Despite significant foreign capital outflows due to U.S. rate hike expectations, domestic institutional buying is supporting key stocks like Wistron and EVA Air, potentially driving the index toward 47,000.

What Happened

Capital Flow Dynamics: International hot money has pulled over NT$70 billion from the Taiwan stock market this week, driven by heightened expectations of U.S. interest rate hikes. Despite this, domestic investment trusts have maintained a consistent buying streak, acting as a buffer against broader market volatility.

Institutional Favorites: A selection of 16 stocks currently seeing simultaneous buying from both foreign investors and domestic trusts has emerged. Key names in this group include First Financial, Taishin Financial, Wistron, Inventec, and EVA Air, all of which demonstrate strong performance metrics.

Market Outlook: These institutional-backed stocks are viewed as the primary drivers for the market's next leg up. Analysts suggest that if this buying momentum persists, it could provide the necessary strength for the index to challenge the 47,000-point milestone.

Strategic Implications: Investors are advised to monitor institutional chip distribution closely, particularly in sectors where both foreign and domestic capital are aligned. These high-conviction stocks remain the most likely candidates to lead any potential market recovery or rally.

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