Taiwan Stock Market Gains 1.47% Last Week, Short-Term Rally Suggests Caution on Holdings

Market analysts indicate that while the Taiwan stock market saw a 1.47% increase last week, this rebound could be merely a 'short-term rally.' Therefore, investors are advised to keep their holdings conservative. Foreign investors sold NT$60.385 billion during the same period, resulting in a closing index of 21,660.66 points, with a gain of 313.36 points, though the five-day average trading volume stood at NT$358.9 billion, showing that the volume has not kept pace.
In reviewing the performance of major Asian markets, South Korea topped the charts with a remarkable 4.24% gain, followed by Taipei and Hong Kong, which have also performed well. Yet, as the index approaches 21,800 points, upward momentum appears to be slowing. While technical indicators have shown signs of strength, the quick reduction in trading volume suggests weakening market momentum.
Yongfeng Investment Advisory recommends caution; although the financial sector and high-dividend funds have shown strong performance, investors should closely monitor price and volume dynamics, particularly avoiding high-leverage positions.