## Corporate Buying Returns to Boost Taiwan Stocks TSMC's Strong Rally Stabilizes Market Fundamentals

Despite external concerns about the future of Taiwan stocks, the strong buying momentum with a total net purchase of NT$39.572 billion by the three major institutional investors after the market close on the 22nd has provided reassurance. Among them, foreign investors increased their holdings by NT$22.62154 billion in a single day, proprietary traders bought NT$15.8305 billion, and investment trusts bought NT$1.12067 billion, indicating that institutional investors remain confident in the medium-term outlook of Taiwan stocks. Supported by multi-party funds, Taiwan stocks rose today (23rd), closing up 160.83 points to 28,310.47, a gain of 0.57%.

## US Tech Strengths Drive Taiwan Stocks Higher at Opening

The three consecutive days of gains in the S&P 500 and Nasdaq indices have injected vitality into Taiwan electronics stocks. NVIDIA and TSMC ADRs rose by 1.49% and 1.50%, respectively, leading Taiwan stocks to open at 28,253.14 points, with an intraday high of 28,350.37 points. Although selling pressure appeared at high levels, the index remained above the 28,300-point level, showing high-level oscillation, with trading volume maintaining moderate expansion.

## Semiconductors Become Market Focus, TSMC Leads the Rally and Lifts the Market Cap Index

Among the leading stocks, TSMC (2330) performed most impressively, rising NT$25 to NT$1,490, a gain of 1.71%, significantly contributing to the overall market. Other major stocks showed mixed performance: Hon Hai (2317) remained flat at NT$224, Evergreen Marine (2603) unchanged at NT$186, MediaTek (2454) fell NT$10 to NT$1,390, Delta Electronics (2308) fell NT$10 to NT$943, and Epistar (2383) rose NT$15 to NT$1,615.

Funds continue to focus on advanced semiconductor process themes. TSMC, with plans for a 3nm process at its Arizona plant and a strong technological lead, remains a favored target among domestic and foreign institutional investors. In contrast, other traditional industry stocks lack clear thematic support.

## Risks of a Major Downturn in Taiwan Stocks Not Eliminated; Caution Needed for Year-End Market

Although recent market gains are encouraging, concerns about a sharp decline in Taiwan stocks have not been fully alleviated.郭明玉, a fund manager at PGIM Prudential, pointed out that while foreign investor trading has slightly cooled and domestic institutional investors are actively positioning in thematic stocks, the market still needs to be cautious of short-term high-level corrections. She analyzed the current support factors as including:

- Continued strength in US tech sector leading stocks
- US November CPI data below expectations, indicating a cooling inflation environment
- TSMC’s overseas expansion and advanced process plans consolidating its industry leadership
- The gradual fermentation of year-end red envelope market before Lunar New Year

However, historical experience suggests that year-end markets often experience volatility. Supported by these positive factors, it is expected that Taiwan stocks will still have room for performance before the end of the year, but the index will likely remain in high-level oscillation with differentiated individual stock performance. Investors should focus on semiconductors, AI supply chains, memory, and small- and mid-cap stocks favored by domestic investors, while also monitoring potential triggers for a sharp decline in Taiwan stocks.

## Swing Trading Strategies: Capture Year-End to Early Next Year Market Opportunities

Driven by US stocks, foreign capital inflows, and domestic institutional support, Taiwan stocks have regained a bullish trend. Led by TSMC’s rally, the index has stabilized while boosting market confidence. While optimistic, investors should be aware of the risks of short-term overbought conditions and volatility. It is recommended to take advantage of market consolidation to position in industries with growth momentum for the first quarter of next year, aiming to seize swing opportunities from year-end to early next year, while implementing risk management to mitigate impacts from potential sharp declines in Taiwan stocks.