Three Major Institutional Investors Net Sell NT$110 Billion in Taiwan Stocks; Foreign Net Selling Hits 12th Largest in History

(Central News Agency, Taipei, 5th, Reporter Zhong Rongfeng) Taiwan stocks experienced a high-level pullback and consolidation today, ultimately holding above the 45,000-point mark to close at 45,070.94 points, down 606.52 points. The three major institutional investors (foreign investors, investment trusts, and dealers) recorded a combined net sell of NT$110.098 billion today. Foreign investors and Chinese capital net sold NT$82.631 billion, the 12th largest net sell amount in history.

In terms of TAIEX futures positions, the net short position of the three major institutional investors decreased by 2,220 contracts to 12,179 contracts. Among them, foreign investors' net short position slightly decreased by 330 contracts to 69,146 contracts.

Observing the stock trading movements of foreign investors, according to statistics from the Taiwan Stock Exchange, foreign investors bought over 10,000 lots of 11 stocks today, including adding 79,900 lots of UMC, buying 40,500 lots of Yang Ming Marine Transport, and buying Taishin Shin Kong Financial, Chung Shing Textile, Fuh Hwa FTSE REIT ETF (00712), Powerchip Semiconductor, Innolux, Capital High-Grade Non-Investment Grade Bond ETF (00953B), Cathay Financial, Ta Chen Stainless Pipe, and Kinpo Electronics.

In contrast, foreign investors reduced their holdings of KGI Financial by 101,800 lots, sold approximately 93,200 lots of the Active Unified Upgrade 50 ETF (00403A), reduced 76,700 lots of the Active Unified Taiwan Stock Growth ETF (00981A), and sold approximately 62,900 lots of the Yuanta Taiwan 50 ETF.

Stocks where foreign investors reduced holdings by over 20,000 lots also included AUO, Winbond Electronics, AcBel Polytech, Quanta Computer, KGI Taiwan TOP50 ETF (009816), and Far Eastern New Century. Foreign investors sold approximately 17,800 lots of TSMC today, marking a third consecutive day of selling.

Futures analysts analyzed that today's sell-off focus in Taiwan stocks was on small and mid-cap electronics stocks and high-valuation individual stocks that had seen excessive gains in the previous wave. The fact that some large financial heavyweight stocks continued to support the index indicates that the market is still in a phase of high-level capital adjustment and deviation correction, not a panic crash.

Analysts pointed out that TSMC did not see a sell-off in the final trading session, indicating that the market still has confidence in core heavyweight stocks.

Looking ahead to the Taiwan stock market, Huang Wenqing, General Manager of Taishin Investment Consulting, said in a telephone interview that the key observation point remains whether the US and Iran can truly reach an agreement to allow the Strait of Hormuz to open. If free navigation is possible, it will be beneficial for the capital side of the international stock market.

Huang stated that continued attention should be paid to the excessively large positive divergence between TAIEX futures and the spot index, as well as the trend of foreign investors' net short positions in TAIEX futures. (Editor: Zhang Liangzhi) 1150605