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SinoPac Securities: Taiwan Stocks to Trade in Range, 45,000 Points Key Support

Finance · Investment Banks/Brokers · economic_daily · 2026-11-03

SinoPac Securities forecasts a range-bound November for Taiwan stocks, advising investors to treat the 45,000-point level as a critical support zone.

What Happened

Trading Range: SinoPac Securities projects the Taiwan stock market will fluctuate between 44,000 and 49,000 points in November, identifying 45,000 as a vital medium-term support level. Investors are advised to accumulate positions on dips if the support holds, while preparing to reduce exposure if the index breaks below this threshold.

Capital Allocation: Market sentiment currently favors risk aversion, with traditional sectors like petrochemicals and financial holdings showing resilience. Analysts suggest focusing on companies with stable cash flows and solid order backlogs to navigate current market volatility.

Market Sentiment: Performance in the second half of November will hinge on post-election foreign capital inflows, US inflation trends, and Nvidia's earnings results. A sustained recovery and a challenge to the 49,000-point level will require a significant increase in market turnover and a shift in foreign investor sentiment.

AI Supply Chain: Despite short-term valuation pressures, the long-term outlook for the AI supply chain remains intact as cloud service providers continue to increase capital expenditures. SinoPac emphasizes that AI-related stocks remain a primary focus for medium-to-long-term portfolios once market valuations stabilize.

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