Taiwan Stock Market Pre-market | Foreign vs. Local Strategy Focuses on [Largan Precision, China Airlines, ASMedia], Market Plunges 2,030 Points Testing 41,000 Level, Margin Debt Slashes NT$23.1 Billion to Clear Speculative Positions

On July 28, the Taiwan stock market faced severe international market volatility and profit-taking pressure, causing the TAIEX to open lower and continue declining throughout the day. It closed down 2,030.83 points (-4.65%) at 41,603.36, with trading value increasing to NT$866.79 billion. The three major institutional investors collectively sold a net NT$116.94 billion in the集中 market, with foreign investors selling NT$87.56 billion, proprietary traders selling NT$31.73 billion, while investment trust companies逆势 bought NT$2.35 billion. The TPEx Index fell 25.67 points (-6.79%) to close at 352.42, yet the three major institutional investors on TPEx逆势 net bought NT$1.84 billion, indicating strong local investor support. Margin financing plummeted by NT$23.13 billion to NT$545.54 billion, reflecting rapid deleveraging by retail investors; short selling increased by 33,000 contracts to 219,300 contracts, while day trading surged to 2.587 million contracts.

1. Market Analysis

The market decline was driven by global panic and liquidation of leveraged products. However, domestic investment trusts expanded their buying in both集中 and TPEx markets. The single-day reduction of NT$23.1 billion in margin financing indicates aggressive cleaning of speculative positions, with capital rotating from high-flying large-cap stocks to fundamentally sound, seasonally resilient stocks.

2. Strong Industries

· Aviation Sector (Dual Passenger & Cargo Seasonal Strength):

Summer travel demand keeps passenger load factors above 90%, while AI server and high-value electronics rush orders boost freight rates. China Airlines (2610) rose 2.35% to NT$21.75, with investment trusts adding 664 contracts; EVA Airways (2618) gained 1.91% to NT$42.75; Starlux Airlines (2646) increased 2.00% to NT$22.00.

· Optical Lenses & High-End Components (AI Vision Rush Orders):

Benefiting from U.S. and Asian flagship smartphone inventory buildup, as well as AI robotics vision and automotive high-end lens transformation. Largan Precision (3441) saw explosive volume, buying 26,700 contracts, surging 9.19% to NT$77.20; Advanced Optical (3362) closed at NT$155.00; Largan (3008) held its leadership at NT$3,920.00.

· High-Speed Transmission ICs (Urgent AI Upgrade Demand):

Driven by widespread adoption of USB4 and PCIe Gen 5 in AI servers and PC platforms. ASMedia (5269) surged NT$70 (+5.05%) to close at NT$1,455.00, with market value increasing by NT$5.194 billion, and investment trusts continued to accumulate shares.

3. Weak Industries

· Memory Manufacturing / Niche ICs (Profit-Taking at High Levels):

Impacted by global leveraged product liquidation and profit-taking pressure. Nanya Technology (2408) closed at NT$392.50; Winbond (2344) at NT$144.00; Macronix (2337) at NT$113.00.

· Silicon Wafers (Factory Incident & Correction):

GlobalWafers (6488) suffered a cleanroom fire at its 8-inch Italian plant, causing temporary shutdown and urgent global capacity reallocation; its stock fell 9.95% to NT$959.00; Taiwan Semiconductor (3532) dropped 9.88% to NT$342.00; Holtek (6182) fell 9.91% to NT$104.50.

· IC Substrates (Following Large-Cap Correction):

Dragged down by high-priced stock sell-off. Unimicron (3037) fell 9.91% to NT$764.00; Nanya PCB (8046) dropped 9.21% to NT$976.00; Kinsus (3189) plunged 10.00% to NT$639.00.

4. Institutional Investor Picks

Refer to the original text for our curated stock selection strategy.

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