Taiwan’s overnight futures slide set up a defensive Monday open as brokerages circulated buy lists favoring cement, glass, shipping and select financials after foreign investors spent last week reducing Taiwan exposure.
How deep was last week’s damage
The TAIEX lost 4.47 percent in the week through Friday, snapping a four-week winning streak and closing under its 20-day moving average, Commercial Times market data show. The Philadelphia Semiconductor Index’s 3.8 percent Friday drop and a weaker New Taiwan dollar added to concerns that high-multiple AI hardware would lead any correction.
Taiwan futures for the near month settled 1,144 points lower in the Saturday night session, a move traders said would likely gap the cash market lower at the open. Several desks projected a trading band between 45,000 and 49,000 points for the week, with Sinopac strategist Huang Wen-ching noting that electronics weakened while traditional industries and banks held up relatively better.
The sixteen-name screen
Using filters for market capitalization above NT$10 billion, bullish weekly, monthly and quarterly moving averages, and third-quarter revenue growth, Konan Securities investment director Liao Chi-hung highlighted sixteen stocks that still attracted net institutional buying. Taiwan Cement (1101), Taiwan Glass (1802) and Evergreen Marine (2603) topped the list, followed by Pegatron, Shanghai Commercial & Savings Bank, Kinoptix, Fu Hsun Fiber, Formosa Petrochemical, Synnex, System General, Wah Lee Industrial, Tung Yang, Wowprime, Taiwan Union Technology and Yieh Phui.
The mix spans cement, glass, container shipping, electronics manufacturing services, finance and consumer dining, reflecting a rotation away from pure AI beta. Taiwan Glass has benefited from low-dielectric fiberglass demand tied to AI servers, with chairman Lin Hong-fa telling investors that high-end cloth remains sold out into late 2027.
Shipping and refining angles
Evergreen and peers drew attention as container rates stayed firm despite global growth worries. Formosa Petrochemical, meanwhile, is riding wide refining spreads as autumn maintenance and heating-oil stocking tighten product markets, according to Everbright Securities notes circulated Sunday.
Not every defensive name is cheap: several strategists warned against chasing weekly winners after sharp runs, recommending staggered entries if the weighted index tests its quarterly moving average. They also flagged margin-financing levels, saying a rapid deleveraging spike could briefly push the index through support even if earnings remain intact.
Who is still buying Taiwan
Investment trusts and government-linked funds continued to buy on dips last week, a flow Everbright said explained why Taiwan fell less than some regional semiconductor peers. Foreign funds remained net sellers, however, and currency weakness raised the cost of hedging new positions.
Huang at Sinopac said the market is not in a broad bear phase because longer-term averages still slope upward, but October is likely to feature sector rotation rather than index melt-ups. Traders will watch whether defensive leaders can hold gains if U.S. tech earnings disappoint.
Monday’s setup
With Typhoon Champi still far offshore, weather is not yet disrupting port operations, leaving shipping schedules intact for now. The immediate focus is whether net buyers step in around the futures-implied gap or whether overseas sentiment forces another down day before U.S. results begin.
For investors rotating within Taiwan rather than leaving the market, the institutional shopping list is a map of where cash went when AI names wobbled—and a test of whether that trade has more room to run.