Taiwan Stock Pre-Market: US Market Pullback Triggers 1,196-Point Plunge; Container Shipping and Investment-to-Book Ratio Stocks Defy Trend

Affected by the pullback in US technology stocks and profit-taking in high-priced large-cap stocks, Taiwan's stock market opened lower and plunged sharply on July 24, with the weighted index tumbling 1,195.97 points to close at 43,654.84. Foreign investors withdrew NT$60.9 billion, while institutional investors expanded their counter-trend buying in both the main and OTC markets. Market funds shifted toward container shipping and quartz components, with investment strategy recommending a focus on stocks with strong investment-to-book ratios that institutional investors have consistently accumulated.

I. Market Analysis

On July 24, the Taiwan market plunged, with the weighted index down 2.67% at 43,654.84, on turnover of NT$825.08 billion. The three major institutional investors collectively sold short NT$66.39 billion, with foreign investors selling short NT$60.95 billion, proprietary traders NT$11.15 billion, while institutional investors bought a net NT$5.71 billion. The OTC index fell 3.69% to 377.63, with turnover of NT$189.33 billion, and institutional investors bought a net NT$1.66 billion. Container shipping and quartz components rose against the trend, while MLCC passive components and copper-clad laminates pulled back.

II. Strong Industries

· Container Shipping (Peak Season Demand + Freight Rate Rebound):

Benefiting from the start of the North American restocking season and higher surcharges, with Mediterranean tensions absorbing new vessel capacity. Wan Hai (2615) rose 2.96% to NT$87.00, Yang Ming (2609) gained 1.98% to NT$51.50, and Evergreen (2603) rose 1.23% to NT$206.00.

· Quartz Components (AI Server + CPO Demand):

High-end timing components are seeing surging demand from AI and 5G high-frequency transmission, driving improved capacity utilization. Taitien (3221) surged 8.97% on high volume to NT$49.20, Sii (2484) rose 3.60% to NT$71.90, and KDS (3042) gained 0.30% to NT$165.00.

· Memory Modules (Increased Per-Device Installation):

The rise of AI PCs and AI smartphones is boosting DRAM/NAND installation capacity, with benefits from low-cost inventory becoming evident. Transcend (2451) surged 7.98% to NT$264.00, and ADATA (3260) rose 1.19% to NT$383.00.

III. Weak Industries

· Passive Components MLCC (Profit-Taking at High Levels):

Consumer electronics recovery slowed slightly, and the previous day's sharp rally triggered profit-taking after the 1,000-point plunge. Yageo (2327) fell 7.76% to NT$642.00, and Walsin Technology (2492) dropped 8.67% to NT$274.00.

· Copper Clad Laminates (CCL) (Short-Term Position Cleaning):

Impacted by delivery schedule adjustments for high-end AI server motherboard materials and significant short-term profit-taking. ITEQ (6213) plunged 9.90% to NT$309.50, and TTM Technologies (2383) fell 6.67% to NT$4,755.00.

IV. Institutional Investors' Selected Stocks

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This information is for reference only and does not constitute any investment advice. Investors should make independent judgments and bear their own risks.