TAIEX Drops on First Day Post Election 台股今一度跌逾200點 跌破14600點關卡

Taiwan's stock market plunged this morning after the local election ended. It fell more than 200 points during the session, falling below 14,600 points. 

The TAIEX fell more than 200 points, crossing below the 14,600 level on the first trading day after the local elections. TSMC fell NT$12 at the opening and expanded its loss after hitting NT$486. Other large-cap electronic companies such as Hon Hai and UMC also retreated. The financial industry also performed weakly.

Wang Jung-hsu, CEO, Marbo Investment Advisors: “Protests broke out against quarantine policies in China over the weekend, which causes worries in the market as China's demand could fall further. In addition to the decline in Taiwanese stocks, Asian stock markets generally tumbled on the 28th. A stronger U.S. dollar means that funds are flowing out, which is more unfavorable for large-cap stocks.”

Analysts said that China is a big consumer country and if the effect of China's "A4 Revolution" expands this time, it may have a great impact on international stocks in the future. Moreover, the TAIEX has risen by more than 2,000 points in the past month. The index may fluctuate in the short term. Analysts are also worried about the weakening support of the National Financial Stabilization Fund as the local elections have ended, along with waning political pressure.

Juan Ching-hwa, Deputy Minister of Finance: “Before we exit the stock market, we always try to maintain its stability. Today's situation is quite special. We will pay close attention.”

Juan said that although the stock market has stabilized slightly, there are still many uncertainties in the future. He will continue to pay attention to the stock market. At this stage, because there are no major special circumstances, there is no need to hold an ad hoc meeting. The next scheduled meeting is for January next year. The fund's invested amount and performance for the fourth quarter will also be announced at that time.