U.S. President Trump's fluctuating tariff policies and Moody's downgrade of U.S. Treasury ratings have impacted market sentiments. With the appreciation of the New Taiwan Dollar and the FSC lifting short-selling restrictions, Taiwan's stock market reversed after the 520 sentiment, dropping 191 points last week and breaking a four-week winning streak. Yesterday (26th), it fell another 115 points, closing below the 5-day and 10-day moving averages, raising investors' concerns about the upcoming Dragon Boat Festival holiday.

Analysts indicate that Taiwan's stock market has rebounded more than 4,000 points since early April, and as long as it does not drop below the 21,113-point quarterly support and increases in trading volume, the index could potentially rise again. However, if it falls below 20,996 points, market conditions may weaken, requiring investors to stay vigilant.

According to data, foreign investors have bought NT$251.582 billion in Taiwan stocks this month. Despite a continuous buying trend last week, the buy amount was the lowest in five weeks at NT$21.9 billion. Among the top ten stocks purchased by foreign investors, CTCB ranked first with 451,000 shares, and the second was KGI Securities with 233,000 shares. Notably, CTCB’s continuous buying ended yesterday with a sell-off of 18,000 shares, causing its stock price to drop by NT$1.45.

Moreover, foreign investors had the highest sell-offs in Innolux, which saw a sell of 249,000 shares, with its stock price dropping to NT$12.75 yesterday. The market needs to closely monitor upcoming trading days for developments.