Taiwan Stocks Fall 76 Points, Leave Long Lower Shadow of 1,143 Points; Active ETFs and AI Stocks Provide Support

(Central News Agency, reporter Wu Jiahao, Taipei, June 11) Impacted by a sharp increase in US-Iran geopolitical risks, the Taiwan stock market plunged over 1,200 points in early trading today, barely holding the 42,000-point mark. However, with strong buying pressure flowing into active ETFs and the AI sector, the decline narrowed. The benchmark TAIEX closed at 43,149.46 points, down 76.08 points, or 0.18%, leaving a long lower shadow of 1,143 points. Trading value reached NT$1.257975 trillion.

The electronics sub-index fell 0.2%, the semiconductor index turned positive to close up 0.04%, and the financial index rose 0.27%. The over-the-counter (OTC) index, representing small and mid-cap stocks, closed up 0.29%.

Among heavyweight stocks, TSMC, the market's largest by value, went ex-dividend for NT$6. Despite initial pressure, it completed its price adjustment (filling the gap) in less than 30 seconds thanks to buying support, closing flat at NT$2,250, acting as a market pillar. MediaTek held the NT$4,000 level, closing at NT$4,085, down 1.68%. Delta Electronics closed at NT$2,160, down 1.82%.

Due to the escalating tensions in the Middle East, capital flows shifted noticeably. AI concept stocks and the electronic hardware supply chain became major targets for profit-taking in early trading, with key stocks like Quanta Computer and Wistron falling as much as 5% intraday. Following the broader market's afternoon rebound, their losses narrowed, closing at NT$370 and NT$152.5, respectively.

Defensive high-dividend stocks, green energy, and biotech sectors showed resilience during the session. Active ETFs, which have recently garnered significant market attention, faced heavy adjustments. Active Uni-President Upgrade 50 (00403A) saw its trading volume surge past 760,000 lots today, while Active Uni-President Taiwan Stock Growth (00981A) also exceeded 430,000 lots. They closed at NT$9.99 and NT$29.71, down 0.5% and 0.6%, respectively.

The number of high-priced 'thousand-dollar stocks' (stocks above NT$1,000) decreased to 46. Auras Technology closed at NT$998, down NT$12 or 1.19%. Bellicose (transliteration) opened at NT$1,000 but was affected by the market's sharp decline, closing at NT$946, down NT$53 or 5.31%.

Li Fang-kuo, Chairman of President Capital Management, told CNA that the market's intraday dip to around 42,000 points followed by a rebound is highly likely the relative bottom of this correction. He noted that bearish factors worrying the market, including inflation, interest rate hikes, and war, have been gradually priced into the stock correction. Coupled with technical signals suggesting a bottom in US stocks, the long lower shadow left by Taiwan stocks today indicates strong downside support, and there is no need for excessive pessimism.

Li cautioned that the current market correction is a healthy adjustment within a bullish framework, not a transition into a bear market. In a bull market, margin buying is an essential source of momentum and confidence for pushing the index higher. He advised investors to maintain confidence in the market and wait for the stabilization of positions before the bullish momentum re-consolidates. (Editor: Chang Liang-chih) 1150611