Taiwan Stock Pre-Market | TAIEX Soars 1,783 Points, Watch Today's Volume and Alphabet, Tesla Earnings

On July 21, Taiwan's stock market rebounded strongly, with the TAIEX surging 4.20% to close at 44,232.87 points, on turnover of NT$856.9 billion. The TPEx Index rose 3.64% to close at 381.96 points. The three major institutional investors collectively bought NT$16.4 billion, with foreign investors selling NT$4.33 billion and local institutional investors aggressively buying NT$17.23 billion. Market funds flowed back into semiconductors and AI supply chains, with copper-clad laminate (CCL), IC substrates, and specialty memory becoming key bullish focuses.

1. Market Analysis

The TAIEX opened high and continued to climb, surging 1,783 points, led by TSMC and large-cap electronics stocks. Both the main and OTC markets exhibited a 'rally without volume' pattern, primarily reflecting惜售 sentiment after the previous day's sharp drop and short covering, with floating shares not yet fully washed out. In terms of positioning, foreign investors continued to sell NT$4.33 billion, while institutional investors strongly supported the market with NT$17.23 billion in net buys. Due to short-term price-volume divergence, whether aggressive buying enters today to replenish volume will be key to sustaining the rally.

2. Strong Industries

· Copper-Clad Laminate (CCL) (AI Upgrade Rush Orders):

Driven by expanding demand for high-end, ultra-low-loss M7 and M8 materials for next-generation AI server platforms, gross margins have risen. Laminated (6213-TW) surged to the daily limit at NT$354.5, Taipower Electronics (2383-TW) rose sharply to NT$1,280, and TTM Technologies (6274-TW) closed sharply higher at NT$392.

· IC Substrate (Advanced Packaging Demand):

Demand for ABF substrates has heated up due to advanced packaging of AI chips (CoWoS and Chiplet), with utilization rates rebounding. Unimicron (3037-TW) hit the daily limit at NT$825, Kinsus (3189-TW) rose 9.87% to NT$746, and Nanya PCB (8046-TW) surged 7.69% to NT$1,190.

· Specialty Memory (Inventory Replenishment Boom):

Inventory restocking is being driven by demand from AI edge devices and industrial control, coupled with expectations of price hikes. Aptina (6531-TW) reported June revenue up nearly 60% year-on-year, locked at the daily limit at NT$858; Etron (5351-TW) and Elite Semiconductor (3006-TW) also rebounded strongly together.

3. Weak Industries

· Cleaning Supplies (Fund Magnet Effect):

The market was dominated by electronics stocks, while consumer staples and cleaning supplies, lacking short-term catalysts, saw funds withdrawn. Mao Bao (1732-TW), Mei-Wah (1731-TW), and Fairy (1730-TW) were pressured on the downside and performed weakly.

· Silicon Wafers (Profit-Taking at High Levels):

Divergence in inventory digestion between mature processes and 8-inch silicon wafers has pressured spot prices. GlobalWafers (6488-TW), Taiwan Semiconductor (3532-TW), and GigaDevice (3016-TW) faced profit-taking by institutional investors, resulting in weak and consolidating stock prices.

4. Institutional Investor Stock Selection

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