Taiwan Stocks Plunge 1,478 Points, Close at 43,225, Below Monthly Average

(Central News Agency, reporters Zeng Renkai and He Xiuling, Taipei, 10th) Under selling pressure on technology stocks, Taiwan's stock market came under pressure today, with a sharp sell-off after noon. The TAIEX closed at its lowest point of the day, falling 1,478.90 points to 43,225.54, below its monthly moving average of approximately 43,349 points. This marks the sixth-largest closing point drop in history, completely wiping out yesterday's sharp rebound of 1,201 points. Trading value was approximately NT$1.324 trillion. Performance of the four major weighted stocks: TSMC closed down NT$50 or 2.17% at NT$2,255; MediaTek plunged NT$320 or 7.15% to NT$4,155; Delta Electronics tumbled NT$215 or 8.90% to NT$2,200; Hon Hai fell NT$14.5 or 5.23% to NT$263. Largan Precision made significant progress in CPO (Co-Packaged Optics). Chairman Lin En-ping revealed at the shareholders' meeting on the 9th that the first automated trial production line is expected to be completed by September. The stock hit its daily price limit for the second consecutive day, closing up NT$245 or 6.31% at NT$4,130. The passive components sector had a dramatic day. Leader Yageo hit its daily price limit shortly after the market opened, leading over 10 stocks in the sector to also hit their limits. However, after noon, Yageo led a sharp sell-off, turning from gains to losses, closing down NT$7 or 0.85% at NT$819, with a full-day fluctuation of over NT$100. Central Bank Governor Yang Chin-long stated today that selective credit controls "stop here." The market interpreted this as no imminent 8th wave of housing market controls, which spurred a strong rally in the construction and building materials sector, making it one of the market's focal groups. Stocks including Chuan Kun Enterprise, Xin Ba Ba, King's Town Construction, Cathay Real Estate, Kindom Development, San Di Properties, KUNG SING Engineering, and Lian Shang Fa all hit their daily price limits. Ai Shan Lin closed up 8.64%, Farglory up 8.16%, and Chong Hong up 7.46%. Chen Po-chou, General Manager of CITIC Investment Advisory, analyzed that this market pullback after a significant rise is not primarily due to fundamental factors. As seen from the just-concluded COMPUTEX Taipei, AI fundamentals have not changed significantly and are still booming. Chen believes the current focus is on positional factors. First, margin balance: as of Tuesday, listed stock margin balance was approximately NT$563.8 billion, of which about NT$200-250 billion was new funds added this year. If it can drop below NT$500 billion, the positional structure would be healthier. Second, foreign investors' open short positions in futures have slightly decreased from a historical high of 69,000 contracts last Friday to about 61,800 contracts on Tuesday. Ideally, this should drop below 60,000 contracts. Third, US Treasury yields are currently maintaining a high level of 4% to 5%. If they remain elevated, it could suppress stock market performance. (Editor: Lin Jiaxian) 1150610