Taipei Stocks: TAIEX, TSMC and Foreign Flows — 2026-10-13
On October 13, the TAIEX plunged nearly 1,000 points as foreign investors executed one of the largest single-day sell-offs in history, withdrawing over NT$165 billion. The sharp decline, driven by geopolitical tensions and a global tech sell-off, pushed the Taiwan dollar past the critical NT$32 threshold against the US dollar for the first time in two months.
Taipei Stocks: TAIEX, TSMC and Foreign Flows — 2026-10-13
Top developments
Foreign investors execute historic sell-off, TAIEX drops 1.95%
On October 13, the benchmark TAIEX closed at 48,341.31 points, a drop of 960.65 points (1.95%), tracking an overnight sell-off in US technology stocks triggered by rising crude oil prices following a Houthi attack on a Saudi airport. Foreign institutions withdrew a staggering NT$165.34 billion (approx. US$5.2 billion) in a single session, marking the third-largest daily net sell-off in market history. This massive outflow was joined by self-traders selling NT$56.98 billion, resulting in a total institutional net sell of NT$198.4 billion. The heavy selling pressured semiconductor heavyweights, with TSMC falling NT$50 to close at NT$2,490.
Taiwan dollar breaches NT$32 amid safe-haven shift
The Taiwan dollar depreciated sharply, closing above the NT$32 mark against the US dollar for the first time in two months. The currency fell to 32.0+ levels as investors shifted funds to the greenback as a safe haven amidst escalating geopolitical unease and the massive foreign outflows from the equity market. This follows a three-day depreciation streak that began after the National Day holiday, with the central bank reportedly intervening to cap excessive volatility but struggling to halt the slide driven by foreign capital withdrawal.
Securities tax revenue hits September record despite turnover decline
Despite the recent market volatility and declining trading volumes in October, securities transaction tax revenue for September reached a new high for that month at NT$53.4 billion (US$1.66 billion), up 71.2% year-on-year. This surge reflects the high activity levels earlier in the year, even though monthly turnover has declined for three consecutive months leading into October. The data highlights the lagging nature of tax receipts compared to immediate market sentiment shifts seen in the recent sell-off.
Local view
Local media outlets are focusing heavily on the scale of the foreign "withdrawal" and the psychological impact of breaking key support levels. China Times highlighted the "double kill" scenario where both stocks and the currency fell, noting that foreign investors "stopped playing" by dumping NT$165.3 billion, which is causing alarm about whether the worst is yet to come. Newtalk News reported on the "massive volume" sell-off, with turnover exceeding NT$1.1 trillion, emphasizing that electronic heavyweights were the primary targets of this liquidation event. Analysts cited by SETN are urging caution, advising investors to watch TSMC's upcoming earnings call on October 15 as a potential catalyst for stabilization or further correction.
Context & numbers
- TAIEX Close (Oct 13): 48,341.31 points (-960.65 points / -1.95%)
- Foreign Net Sell (Oct 13): NT$165.34 billion (3rd largest in history)
- Total Institutional Net Sell (Oct 13): NT$198.44 billion
- Turnover (Oct 13): NT$1.12 trillion
- TSMC Price (Oct 13): NT$2,490 (down NT$50)
- USD/TWD Rate: Closed above 32.00, breaching the psychological threshold
- Foreign Exchange Reserves: US$600.75 billion as of end-September, down US$1.15 billion month-on-month due to intervention and USD strength
On the radar
- TSMC Q3 Earnings Call: Scheduled for October 15 at 2:00 PM Taipei time. Market sentiment hinges on guidance regarding AI demand and 2026 capital expenditure plans. A cautious outlook could exacerbate current selling pressures, while optimistic guidance might trigger a rebound.
- Central Bank Intervention: Watch for further actions from the Central Bank of the Republic of China to stabilize the Taiwan dollar if it continues to weaken significantly beyond the NT$32 level.
- Geopolitical Developments: Any further escalation in Middle East tensions affecting oil prices could continue to weigh on global tech valuations and Asian markets.
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