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Taiwan Stocks Trim Losses After Volatile Session; Margin Debt Drops by NT$8.47 Billion
economic_daily · 2026-11-04
Taiwanese equities experienced heavy intraday volatility before recovering late in the session, as combined margin debt across the main and OTC markets fell by NT$8.47 billion.
What Happened
Intraday Volatility and Recovery: The Taiwan stock market saw significant turbulence today, with the main index plunging over 3% at one point before a late-session buying surge narrowed the losses. By the close, the main index fell by 358.63 points, while the OTC index saw a more modest decline of 2.02 points.
Margin Debt Contraction: Total margin debt across both the main and OTC markets decreased by NT$8.47 billion today. The main market's margin balance dropped to NT$596.95 billion, while the OTC market's balance fell to NT$190.92 billion.
Cumulative Market Decline: Since the peak on October 6, the main board has corrected by 14.05%, while the OTC market has suffered a sharper decline of 20.28%. Despite these significant index drops, the reduction in margin debt has been relatively limited, suggesting that retail leverage remains a factor.
Market Outlook and Risks: Analysts warn that market sentiment remains fragile with margin levels still elevated. If the market fails to stage a robust rebound, any further downside could trigger increased margin calls and additional selling pressure.