Taiwan stocks fluctuated and fell another thousand points. 00713 and 0055 bucked the trend and closed in the red.
Quick Look
- Taiwan stocks closed down 1,165 points due to short-term profit-taking selling pressure.
- However, Yuanta MSCI Financial (0055) and Yuanta Taiwan High Interest Rate and Low Volatility (00713), two major anti-seismic indicators, bucked the trend and closed in the red, showing their hedging value amid the shock.
AI-generated summary
Why It Matters
After three consecutive days of violent rebound, Taiwan stocks closed down 1,165 points today due to short-term profit-taking selling pressure.
Taiwan stocks fluctuated and fell another thousand points, with 00713 and 0055 bucking the trend and closing in the red.
[Reporter Zhang Huiwen/Taipei Report] After three consecutive days of violent rebound, the Taiwan stock market was affected by short-term profit-taking selling pressure today and closed down 1,165 points. However, the two major anti-seismic indicators Yuanta MSCI Financial (0055) and Yuanta Taiwan High Interest Rate Low Volatility (00713) bucked the trend and closed in the red again, playing a safe haven value amid the huge shock consolidation.
The legal person pointed out that the impact of the Huida incident has not been clear yet, and the market's precautionary mentality has boosted the wait-and-see sentiment. Coupled with the slowdown in buying after the three-day surge in Taiwanese stocks, funds have been transferred into financial stocks that have also made strong profits this year, including the active stock market trading. This has driven the price of gold holdings of securities entities upward to challenge the record high, driving the financial index to continue to outperform the weighted index this year, becoming the focus of stabilizing the market.
0055 is the first financial ETF in China, and its constituent stocks cover Taiwan’s major financial holdings, while the 00713 constituent stocks mainly select companies with both high dividends and low volatility characteristics from Taiwan’s medium and large enterprises, and control the stock price correlation between the constituent stocks to reduce the risk of both rising and falling. To the effect of low volatility, this year, including the correction period of Taiwan stocks in July and October, they rose by 6.4% and 6.8% respectively in a single month; the legal person believes that violent fluctuations in the bull market of Taiwan stocks will become the norm, and it is recommended that investors can use 00713 and 0055 as assets to control downside risks.
Open Questions
- What is the actual impact of the Huida incident on the subsequent market?
