Taiwan Stock Market Volatility Amid Weak Trading Volume: 7 High-Priced Stocks Hit Limit-Down, 4 Exit 'Thousand-Dollar Club' Leaving 44 Remaining

The Taiwan stock index experienced extreme volatility in morning trading, reversing from a gain of over 400 points to a sharp intraday drop of more than 700 points, resulting in a total swing of over 1,000 points. However, the estimated total trading value for the day remained below TWD 1.1 trillion, indicating weak market participation.

High-priced 'thousand-dollar stocks' saw intense fluctuations, with seven stocks hitting the daily lower limit (limit-down) during trading. Four stocks fell below the TWD 1,000 threshold, exiting the exclusive 'thousand-dollar club.' At the beginning of July, there were 53 such stocks; now, only 44 remain.

Chip giant TSMC (2330-TW) briefly surged TWD 50 to TWD 2,340, surpassing its quarterly moving average, while MediaTek (2454-TW) briefly reached TWD 3,435. However, the broader market trend remained bearish. The main index dipped as low as 41,967.75 points, with a total intraday range of 1,117 points.

The five-day average trading volume in the Taiwan stock market has dropped to TWD 1.06 trillion, down from the peak of around TWD 1.5 trillion in June and July, reflecting shrinking liquidity. This lack of volume has made it difficult for high-priced stocks to sustain gains, leading to widespread declines. Megatrend (5274-TW), known as the 'stock king,' fell 5.98% during the session, while 'stock queen' Chuan-Hu (2059-TW) declined 2.03%.

At one point, seven stocks hit limit-down: Lien Yu Metal - Creative (7610-TW), Innovation Service (7828-TW), United Biomedical (3081-TW), Sunline Technology (3491-TW), OptoStar (6442-TW), Yung-Chih (6683-TW), and Kao Li (8996-TW).

Additionally, four stocks—Pericor Biomedical - Creative (6949-TW), Zhaolian (6944-TW), Ascent (6904-TW), and Wan Run (6187-TW)—temporarily fell below TWD 1,000, exiting the thousand-dollar stock category.

Among the current 44 thousand-dollar stocks, only six—Wiwynn (6669-TW), TSMC (2330-TW), Syntec (7750-TW), Airtac-KY (1590-TW), GlobalWafers (6488-TW), and Pharmaron (6446-TW)—managed to maintain positive or flat performance against the downtrend. The remaining 38 stocks faced heavy selling pressure and declined across the board.

As profit-taking intensified at market highs, previously high-flying thousand-dollar stocks are facing significant correction pressure, with some stocks seeing prices cut in half from their peaks. For example, optical communications leader Powertech Technology (3163-TW) once reached a high of TWD 1,315 but plunged to TWD 587 during the session, a decline of 9.97%, with its price now down more than 50% from its peak.