Taiwan stocks rebound sharply as Guo’s 0050 ETF dip-buy nears NT$10 million paper profit

Taiwan stocks staged a historic rebound on July 31, with the TAIEX surging 3,186.45 points, or 7.98%, to close at 43,119.75 after rising as much as 3,200 points intraday to 43,195.12. The move restored the 43,000 level and set a new record for the largest single-day point gain in Taiwan’s stock market history, led by heavyweight shares including TSMC, Hon Hai, MediaTek and Quanta Computer. TSMC surged to its daily limit of NT$2,425 during the session before closing up NT$220, or 9.98%, near the limit-up price. Hon Hai rose NT$21 to NT$250.5, MediaTek gained NT$320 to NT$3,555 and Quanta Computer added NT$12.5 to NT$291.5. The rally broadened across the market, with more than 100 listed companies hitting their daily limit and as many as 202 stocks simultaneously at limit-up at one point. UMC, Nan Ya Plastics, Winbond, Macronix and Nanya Technology were among the names that hit their daily limit. Turnover reached NT$833.71 billion, with estimated volume briefly topping NT$850 billion, as buy orders far outpaced sell orders. Trading data cited in the report showed buy orders totaling 36.54 million lots versus 20.16 million lots on the sell side, underscoring the force of the rebound after panic selling earlier in July. The recovery was helped by broad gains in U.S. markets, especially technology and chip stocks, and by Microsoft guidance that exceeded market expectations and revived confidence in AI-linked names. The jump also strengthened the value of Moore Investment Consulting Chief Investment Officer Guo Zerong’s buy-the-dip trade in the Yuanta Taiwan Top 50 ETF (0050), which he disclosed after purchasing about NT$102.6 million worth of the fund on July 30 at an average cost of around NT$93.33 per share. As 0050 rose above NT$100 and touched an intraday high of NT$102.4 on July 31, the holding’s market value climbed above NT$111 million, implying an unrealized gain estimated at between NT$9.31 million and NT$10 million. Even amid the broad rally, investment trusts were selective. They posted net purchases of NT$33.38 billion overall but were net sellers in several names, led by Holy Stone Enterprise with net sales of 1,543 lots. Holy Stone briefly opened at its daily limit before falling into negative territory, then rebounded with support from foreign investors to close up 5.26% at NT$450 on volume of 6,003 lots. Analysts said the selling suggested some institutions were taking profits in stocks that had already risen sharply, highlighting increasingly divergent positioning beneath the index-level surge.