News / Taiwan / economic_daily
Taiwan Stocks Face Bottoming Process Amid Market Volatility
Electronic Technology · Semiconductors · economic_daily · 2026-11-05
Taiwan's stock market is undergoing a bottoming-out phase after a sharp decline, with analysts suggesting a three-stage recovery process as investors monitor fundamentals.
What Happened
Bottoming Phase: The Taiwan stock market has faced significant downward pressure, falling for six consecutive sessions and breaking below short-term moving averages. Analysts suggest the market is entering a bottoming-out phase, noting that while selling pressure persists, technical signals of stabilization are emerging alongside strong corporate fundamentals.
Recovery Roadmap: Market experts outline a three-stage recovery process consisting of "rebound, reversal, and uptrend," with each phase expected to last approximately two weeks. The initial goal is to reclaim the 6-month moving average, with potential to challenge the 50,000-point level by early next year if the market successfully absorbs overhead supply.
Capital Flows: While foreign institutional investors and proprietary traders have been net sellers, domestic投信 (investment trusts) and state-backed funds have stepped in to provide support. Given that margin debt reduction remains insufficient, investors are advised to remain cautious and avoid aggressive buying until the market clears excess leverage.
Regulatory Stance: In response to recent market volatility and isolated default cases, the Taiwan Stock Exchange and Taipei Exchange have issued statements to bolster investor confidence. They highlighted robust economic growth and strong corporate earnings, emphasizing that the underlying fundamentals of the Taiwanese economy remain solid despite short-term market corrections.