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Taiwan Stocks Face Volatility as Indices Slip; Analysts Eye Support Levels
Finance · Investment Banks/Brokers · economic_daily · 2026-09-03
Taiwan stocks experienced a sharp reversal, shedding 307 points amid heavy selling pressure. Analysts warn of potential further testing of monthly and quarterly support levels.
What Happened
Market Volatility: The Taiwan stock market saw a dramatic session, swinging 678 points intraday before closing down 307 points at 45,857. Profit-taking and heightened caution led to a breach of the 5-day moving average, resulting in a bearish price-volume trend.
Technical and Flow Analysis: Technical indicators have weakened, with the daily KD index flashing a bearish death cross. Foreign institutional investors and proprietary traders continued their selling spree, with combined net outflows from the three major institutional groups reaching 641.5 billion TWD.
State-Backed Intervention: In response to the foreign selling pressure, state-backed banks stepped in with a significant 13.46 billion TWD buy-in to stabilize the market. Meanwhile, domestic investment trusts shifted to a net buying position, providing a modest cushion against the broader sell-off.
Outlook and Projections: Experts suggest that while panic selling has not yet materialized, the index is likely to consolidate between 44,200 and 47,000 points. Future momentum will depend on the upcoming FOMC meeting and the trajectory of the US dollar, which could dictate the next phase of the market's recovery.
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