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Domestic Funds Support Taiwan Stocks as Index Reclaims 47K; Foreign Selling Hits Record
Electronic Technology · Semiconductors · economic_daily · 2026-10-16
Taiwan stocks rebounded to close above 47,111 points on Wednesday, bolstered by domestic institutional buying, even as foreign investors set a record for weekly selling.
What Happened
Market Performance: Taiwan stocks staged a rebound on Wednesday, led by gains in MediaTek, Hon Hai, and major financial holdings. The index rose 141 points to reclaim the 47,111-point level, demonstrating resilience despite late-session pressure on TSMC that capped the overall gains.
Foreign Investor Activity: Foreign investors continued their aggressive exit from the market, offloading a record-breaking NT$586.22 billion in a single week. TSMC bore the brunt of this selling pressure, while foreign net short positions in TAIEX futures remain elevated despite a slight reduction.
Domestic Support: Counteracting the foreign exodus, domestic institutional investors and state-backed banks stepped in to stabilize the market. Investment trusts have now recorded six consecutive days of net buying, totaling NT$91.13 billion, which has been instrumental in mitigating panic and providing a floor for the index.
Technical Outlook: The market faced significant technical headwinds this week, losing key support levels and suffering a 4.4% weekly decline of 2,202 points—the second-largest weekly drop in history. Trading volume contracted to NT$993.8 billion, reflecting a cautious wait-and-see approach among investors following the recent volatility.