Taiwan Weekly Kickstart TAIEX retreated 1 as Tech stocks dragged on performance amid foreign and local institutional sellin...

Portfolio Strategy Research 22 August 2026 | 12:03AM HKT

TAIEX retreated 1% as Tech stocks dragged on performance amid foreign and local institutional selling, despite a 1% gain in TSMC, while high-dividend stocks outperformed; TWD strengthened

Performance: TAIEX/MXTW -1.3%/1.6%, underperforming Cross-Strait Risk: GSSRCSRI rose to 83 (Exhibit 53). Alvin So, CFA | MXAPJ by 2.4pp. Transportation (+15%), Energy (+7%), and Goldman Sachs (Asia) L.L.C. Macro Data: Export Orders +61.9% yoy (vs. Jun 59.4%). Telcos and Staples (+2-3%) led gains, while Tech Hardware Timothy Moe, CFA | and Semis (ex-TSMC) fell 4-5%; TSMC rose 0.6%. TWD Upcoming Data: M2 (Mon), Industrial Production & Retail Goldman Sachs (Singapore) Pte

strengthened 0.5% against USD to 31.9 (Exhibit 11) Sales (Tue), Consumer Confidence (Thu). Kinger Lau, CFA | Goldman Sachs (Asia) L.L.C. Flows: QFII flows were muted, with US$1.1bn of net selling Sunil Koul in ex-TSMC Tech offset by US$0.9bn of buying in Industrials Charts of the Week | Goldman Sachs International and US$0.3bn in other non-Tech sectors, while short futures Hedge Fund Flows and Mutual Fund Positioning: QFIIs Terry Chan positions were reduced by US$1.9bn (Exhibit 14). Local have net sold US$40bn of Taiwan equities YTD, led by TSMC | Goldman Sachs (Asia) L.L.C. funds net sold US$1.1bn, primarily in Tech, while buying (-US$51bn); in June-July, they unwound their US$22bn of Financials (Exhibit 15). Retail investors net bought cash purchases made in April-May; hedge funds showed a equities with higher margin ratios but sold futures and ETFs similar flow trend, with both long and short sales (Exhibit (Exhibit 25). Short interest declined further (Exhibit 25). 2). Among mutual funds, EM/AEJ funds significantly ETFs saw another US$0.4bn of net outflows, driven by active reduced their Taiwan exposure during July, while global (-US$0.9bn) and leveraged (-US$0.4bn) ETFs, partly offset funds positioning was relatively stable. Regional funds by inflows into broad-market (+US$0.5bn) and dividend continue to hold an 12.1% weight in TSMC (vs. 15.6% EM (+US$0.4bn) products (Exhibit 30). weight), suggesting potential for further selling due to concentration constraints (Exhibit 4). EPS Revisions: Consensus 2027E EPS is up 0.3%, with most +ve revisions in Transportation and Hardware (Exhibit 49). 2Q26 Results Summary: Taiwan 2Q26 earnings grew +176%/+51% yoy/qoq, with 49% beats vs. 38% misses, and Valuations: f12m/24m PE at 18.9/14.7x (+1.6/+0.7 s.d.). a median earnings/sales surprise of +14%/+4% (Exhibit 5).

TSMC ADR Premium: Down to 11%; Reversal index GSSRTSMR is at -0.4 (potential rebound, Exhibit 50).

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Goldman Sachs Taiwan Weekly Kickstart

Charts of the Week: Hedge Fund Flows and Mutual Fund Positioning 3

Charts of the Week: 2Q26 Earnings Summary 4

Taiwan Market/Sector Summary & Scorecard 5

Regional Fund Flows and Positioning 19

TSMC ADR Premium Reversal Index (GSSRTSMR) 22

Equity and Policy Risk Indicators 23

Monthly Sales Tracker (July 2026) 25