Taiwan Stocks Plunge After Early Surge! Three Major Institutions Sell Over 508 Billion, Experts Name This Type of Stock as a Safe Haven

After several days of decline, the Taiwan stock market faced intense battle between bulls and bears today (30th). In the early trading, it once surged over a thousand points, but then fluctuated downward, and in the late trading, it plummeted, finally closing down 105.88 points or 0.26%, at 39933.30 points, ultimately failing to hold the 40,000-point mark. The number of declining stocks far outnumbered the advancing ones, reflecting that market selling pressure remains heavy. Dahua Optoelectronics 30 (00918) manager Guo Xucheng analyzed that although the fundamentals of AI and the technology industry are sound in the long term, in the short term, they are affected by the high-interest-rate environment and market de-leveraging selling pressure, making the overall market more volatile. As high valuations are corrected, market valuations gradually return to a reasonable range, and the appropriate release of selling pressure is actually beneficial for Taiwan stocks to build a bottom and lay a more solid foundation for long-term bulls. Image source: Securities software Guo Xucheng pointed out that recently, global funds have been conducting defensive rotation, appropriately withdrawing from high-beta technology groups and turning to domestic consumption, durable goods leaders, and non-AI groups that have rigid demand, high operational predictability, and strong defensive attributes. Domestic consumption leaders have the advantage of not being affected by global technology capital expenditure, including high network density, and improved profitability through the expansion of specialized store formats for beauty channels; durable goods and e-commerce leaders have large post-sales warranty financial support or automated logistics moats, with extremely strong anti-economic cycle ability. Looking ahead, Guo Xucheng's analysis believes that the long-term bullish factors for Taiwan stocks remain abundant. The global trend of technological innovation has not changed, and the capital expenditure of technology giants continues to increase, showing that medium- to long-term demand is still strong. At the same time, domestic consumption is booming and the financial sector's profits are maintaining high levels, providing dual support for Taiwan stocks. Guo Xucheng said that during market volatility, low-beta, low-leverage, and high-dividend leading stocks will become a haven for funds. He suggested that investors pay attention to strategic products with 'high ROE and high dividend payout ratio' when the market is low, adopting a regular investment or phased approach to precisely lock in long-term investment opportunities with both interest and dividends. Foreign institutions and proprietary traders jointly sell over 508.74 billion today, with foreign institutions selling 483.12 billion, proprietary traders selling 152.27 billion, and investment trusts buying 126.65 billion. Observing the net position of the Taiwan index futures, foreign institutions' net short positions decreased by 1,768 lots, remaining at 81,017 lots; among the top ten traders, the net short positions of specific institutions for the month's Taiwan index futures decreased by 2,150 lots, remaining at 2,861 lots. In terms of options open interest, the largest OI for August call options is at 55,000 points, and the largest OI for put options is at 34,000 points; the largest OI for August W1 call options is at 47,500 points, and the largest OI for put options is at 40,000 points. The put/call ratio of the month's open interest decreased from 0.84 to 0.79, with foreign institutions' net amount for Taiwan index futures call options at -0.66 billion and put options at 0.82 billion. More exclusive insider information from Wind Media: • Hua Xu takes a hard stance: The Fed's 2% inflation target 'has no flexibility,' and market interest rates have naturally tightened • The stock market continues to plunge, should you add or run? Retesting 40 years of market data, this investment strategy still makes money • Taiwan stock leverage crisis? The FSC reveals the true situation of 'four loans in one,' daily supervision closely monitors two major indicators