On May 5th, the New Taiwan Dollar experienced a sharp surge, reaching as high as NT$29.59 in early trading, marking a daily increase of 4.75%—the largest since 1988. It ultimately closed at NT$30.145, appreciating by 9.19 cents. This significant appreciation heavily impacted the Taiwan stock market, with the TAIEX plunging nearly 500 points before closing down 254 points at 20,532, a drop of 1.23%, with a total transaction value of NT$387 billion.

Meanwhile, the three major institutional investors collectively bought over NT$12.1 billion. Foreign investors increased their positions by NT$24.46 billion, but the financial blue-chip stocks faced considerable selling pressure, adversely affecting the index performance. The foreign investors' top five net buying stocks mainly included financials and blue-chip stocks, with CTBC Financial (2891) leading by buying 38,463 shares; however, its stock price fell by 2.36% to NT$39.3, reflecting market concerns over the Taiwan Dollar's appreciation.

In contrast, Mega Financial (2886) saw a net buying of 15,836 shares, with its stock price rising 1.46% to NT$38.15, making it one of the few gainers in the financial sector. Meanwhile, KGI Securities (2883) had a net buying of 14,843 shares but experienced a 3.04% drop in stock price to NT$15.95, amidst rising concerns over foreign exchange losses.

On the other hand, Cathay Financial (2882) faced a net selling of 23,876 shares, leading to a significant 6.81% drop in share price to NT$54.7, marking its largest decline recently. Fubon Financial (2881) was also sold off by 13,747 shares, with its stock price plummeting 5.88% to NT$80, highlighting that financial stocks are the biggest victims in this currency surge.

The rapid appreciation of the New Taiwan Dollar has created significant pressure on the liquidity of the insurance sector, leading to increased volatility. Investors are advised to remain cautious and pay attention to potential interventions from the central bank and foreign investment movements. It's suggested that investors consider acquiring oversold financial stocks with high dividend yields but focus on those with strong fundamentals and effective foreign exchange risk management.