Taiwan stocks were dragged down by the leading wafer manufacturers in late trading last Friday, turning from red to black. The index fell 54.18 points and ended at 28,233.35 points. Taiwan stocks posted five reds in a row for the week, rising 701.09 points in a single week, a weekly increase of 2.55%, and an average daily volume of 584.349 billion yuan. According to statistics, Taiwan stocks rose 2,412.81 yuan in October. points, with an increase of as high as 9.34%, and market funds are obviously concentrated in large technology stocks.
The three major legal persons only oversold by 40.671 billion yuan, foreign investors oversold by 14.028 billion yuan for the fourth consecutive week, and investment trusts reduced their bets on Taiwan stocks by 15.784 billion yuan for the 12th consecutive week. The three major legal persons collectively oversold by 10.859 billion yuan. As for corporate capital trends in October, foreign investors adjusted by 99.127 billion yuan, and investment trusts oversold. 49.527 billion yuan, self-operated dealers bought more than 89.675 billion yuan, and the three major legal persons collectively sold more than 58.98 billion yuan.
PGIM Prudential Gold Satisfaction Fund Manager Kuo Ming-yu pointed out that the leading wafer manufacturer's strong rise of nearly 15% in October, with its stock price reaching the 1,500 yuan mark, inspired Taiwan stocks to rise simultaneously by 2,412.81 points in October, which was the best October performance in history. It was the second largest single-month gain in the history of Taiwan stocks, pushing Taiwan stocks to stabilize at 28,000 yuan. Above the 5-day moving average, the index continues to set new historical highs, and the market remains above the 5-day moving average.
Looking forward to Taiwan stocks in November, Kuo Mingyu analyzed that four major factors including the outstanding financial reports of some major US technology companies, the good results of the Trump-Xi meeting, the positive news from the NVIDIA GTC conference, and the start of the fourth quarter peak season are conducive to the continued bullish trend of Taiwan stocks into November. However, we should pay attention to the short-term technical positive deviation, and the market is expected to show a strong uptrend in the high-end market.
Guo Mingyu said that from the analysis of the financial reports of major US technology companies, Amazon announced that its third-quarter financial results were higher than expected. The cloud business AWS grew strongly by 20.2% year-on-year, returning to the highest growth rate after the epidemic, reflecting the strong demand for corporate AI investment. The full-year capital expenditure was US$125 billion, an annual increase of more than 40%, giving the AI community reassurance.
Guo Mingyu pointed out that Apple has delivered an eye-catching financial report, and CEO Cook is optimistic that revenue this quarter is expected to grow by more than 10%, driven by strong demand for the iPhone 17 series. So far, the cumulative number of S&&P 500 companies has announced financial reports to 303, and 250 companies have reported profits better than expected, accounting for 82.5%. Important technology companies that will debut next week include AMD, Qualcomm, etc.
Kuo Mingyu believes that as the market's doubts about trade friction gradually dissipated, the AI industry continued to flourish, and Taiwan's key role in the semiconductor and server supply chain was favored by international funds. Foreign capital significantly returned to Taiwan stocks in the second half of the year, which not only boosted trading volume, but also drove the index trend to strengthen, becoming an important driving force for Taiwan stock bulls.
Guo Mingyu emphasized that benefiting from the continued warming of global AI demand, corporate profit outlooks have been continuously revised, and the annual growth rate of the AI community is more likely to reach 32%. Stock selection in the fourth quarter can be directed towards industries and stocks with competitive technologies and products. The industries are mainly foundry, AI servers, power supplies, cooling and other electronic components, CCL, PCB, packaging and testing interface equipment, specialty chemicals, IC design, etc.
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