(Central News Agency, reporter Zhang Jianzhong, Taipei, 8th) Taiwan's stock index futures (TAIFEX) fell 2,146 points today to close at 43,080 points, breaching the key monthly moving average of 43,308 points. Institutional investors stated that while forced liquidation and stop-loss selling pressure emerged in early trading, the uptrend would remain unchanged if the index can quickly reclaim the monthly line, making it a critical indicator to watch.

Following a sharp decline in the U.S. stock market on the 5th, TAIFEX night trading hit a limit-down plunge of 4,522 points at one point, before paring losses to close at 42,220 points, down 3,006 points or 6.65%. This set new records for the largest intraday and closing point drops in TAIFEX history.

TAIFEX opened with a gap down to 42,344 points today, hitting an intraday low of 42,225 points in early trading, a drop of 3,001 points. However, bargain hunting emerged, narrowing the decline to close at 43,080 points, down 2,146 points, and below the monthly line of 43,308 points.

Yuanta Futures stated that because they had pre-calculated and notified clients to deposit margin via online banking, and since most clients are institutional investors who tend to prepare larger margins, there were few margin calls today. Trading volume was high, but the information system operated normally and trading was smooth.

Analyst Jian Boyi said that forced liquidation and stop-loss selling in early trading caused TAIFEX to open with a gap down. He noted that this sell-off was not due to a global systemic risk, and as declines in Japanese and South Korean stock markets narrowed and U.S. tech index futures rebounded, it attracted bargain hunters.

Jian stated that although TAIFEX closed below the monthly line, the decline was smaller than in night trading, indicating a positive trend. He added that if the index does not break below today's low of 42,225 points within three days, the bulls will remain in control.

Huang Guowei, Vice General Manager of Mega International Investment Services, said that the monthly line has been a key support level for the Taiwan stock market and TAIFEX this year. If TAIFEX can quickly return above the monthly line, the uptrend will remain intact, making it the focal point for observation. (Editor: Zhang Liangzhi) 1150608

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  • Source: CNA (Central News Agency)
  • Category: Taiwan