Taiwan Stock Market Drops Nearly 3,600 Points in Two Days, Barely Holds 40,000; Listed and OTC Margin Balances Plummet by NT$52 Billion in One Day

Taiwan Stock Market Morning Brief – July 29

1. On July 29, the Taiwan stock market fell 1,564.18 points, or 3.76%, recording the 7th largest point drop in history, closing at 40,039.18 points with a single-day trading volume of NT$1.08 trillion. The three major institutional investors collectively sold short NT$31.757 billion. Foreign investors continued selling, offloading NT$22.252 billion for the second consecutive day, heavily adjusting ETFs. According to statistics, 9 out of the top 10 most sold short positions by foreign investors were ETFs, with 6 being actively managed ETFs. The actively managed United Upgrade 50 (00403A-TW) led the sell-off with 144,500 lots, followed by the passive Yuanta Taiwan 50 (0050-TW) with 104,900 lots.

2. On July 29, the total margin balances for listed and OTC markets dropped sharply by NT$52 billion. Listed margin balances decreased by NT$38.5 billion to NT$507 billion, while OTC balances dropped by NT$13.5 billion to NT$167.4 billion. According to data from Wan-Ku.com, the maintenance margin ratios for listed and OTC markets fell to 158% and 149.98%, respectively (exact figures subject to official exchange announcements). Over the past four trading days, listed margin balances have decreased by NT$75.6 billion and OTC by NT$25.3 billion, both down approximately 13%.

3. Affected by global geopolitical tensions and tech stock corrections, the Taiwan stock market plunged another 1,564 points on July 29, marking the 7th largest point drop in history, narrowly holding the 40,000-point level. The exchange stated that overall market credit transaction collateral levels remain sufficient and urged investors not to panic based on individual stock maintenance ratios. Driven by AI and high-performance computing demand, Taiwan’s exports, corporate revenues, and profits have all achieved strong results, with positive full-year economic growth outlook and solid fundamentals. Investors are advised to carefully assess long-term corporate value. The exchange emphasized close monitoring of market developments and readiness to implement stabilization measures in coordination with regulators if necessary.

4. Passive component giant Yageo (2327-TW) held its earnings call on July 29. Management reported that the book-to-bill (BB) ratio surged to 2.2 by the end of June. Operations remain strong in Q3, and if raw material costs continue to rise, price hikes may be considered. Customers are also interested in negotiating long-term supply agreements (LTAs) to ensure stable supply.

5. UMC (2303-TW) (UMC-US) held its earnings conference on July 29. CEO Steve Wang announced that this year’s capital expenditure will be raised from $1.5 billion to $2 billion, primarily for specialty processes, advanced packaging, and AI-related capacity expansion. Meanwhile, the board has approved approximately $5 billion in capital expenditure to be phased in from 2026 to 2027 based on customer commitments, orders, and market demand.

6. Copper-clad laminate (CCL) leader Taipower (2383-TW) released its latest earnings on July 29. Q2 2026 net profit after tax reached NT$9.87 billion, a quarterly record, up 84.9% quarter-on-quarter and 1.83 times year-on-year. Earnings per share (EPS) were NT$27.55. H1 2026 net profit reached NT$15.213 billion, up 1.19 times year-on-year, with EPS at NT$42.46.

7. Delta Electronics (2308-TW) announced its Q2 financials on July 29. Net profit after tax was NT$25.135 billion, up 22.28% quarter-on-quarter and 80.21% year-on-year, with EPS of NT$9.68, a quarterly record. H1 net profit reached NT$45.691 billion, up 88.97% year-on-year, with EPS of NT$17.59, also a historical high.