Taiwan Stocks Rebound Past 42,000 Points Amid Record Trading Volume Despite Heavy Foreign Sell-Off

Taiwan’s stock market experienced a dramatic and turbulent trading session, characterized by a massive surge in trading volume exceeding one trillion TWD and a robust rebound of over a thousand points to reclaim the 42,000-point threshold. The impressive recovery comes even as foreign institutional investors continued an aggressive sell-off streak, marking their ninth consecutive session of net selling and offloading a staggering 82.98 billion TWD, according to data from Yahoo Finance and local economic reports.

During the heavy liquidation phase, foreign investors heavily targeted major blue-chip stocks, withdrawing significant capital from semiconductor giant Taiwan Semiconductor Manufacturing Company (TSMC) and offloading over 30,000 shares across prominent panel makers. Notably, Innolux experienced extreme volatility, hitting the daily upper limit before sharply reversing course, leaving nearly one million retail shareholders bewildered by the sudden market swings.

Despite the relentless capital flight by foreign entities—which also saw net short positions in Taiwan Index Futures reach new record highs—domestic buying power and enthusiasm in specific sectors managed to propel the broader market upward. Market analysts highlighted that silicon photonics and printed circuit board (PCB) stocks stole the spotlight, putting on a dazzling display of consecutive limit-up gains.

Financial experts are currently divided on the market’s sustainability, emphasizing that whether the index can firmly stabilize at current levels depends heavily on broader macroeconomic indicators and foreign capital behavior in the upcoming sessions.

Sources: Yahoo Finance