Taiwan Stocks Surge 1201 Points, Yet Foreign Investors Sell Off NT$91.7 Billion, the 8th Largest in History

(CNA reporter Ho Hsiu-ling, Taipei, 9th) The Taiwan stock market (Taiex) surged by 1201.66 points today to close at 44704.44, with a turnover of NT$1.15193 trillion. The three major institutional investors recorded a combined net sell of NT$77.857 billion. Among them, foreign and Mainland Chinese investors sold a net of NT$91.733 billion, marking the 8th largest sell-off in history. This was the fourth consecutive day of net selling, with the cumulative amount reaching NT$343.901 billion. AUO and Cathay Financial were the most heavily sold, with over 80,000 lots each, ranking as the top two in the sell-off list.

Observing the three major institutional investors, securities dealers had a net sell of NT$6.691 billion, investment trusts had a net buy of NT$20.567 billion, and foreign and Mainland Chinese investors had a net sell of NT$91.733 billion.

The top five stocks sold by foreign investors were led by AUO with 84,120 lots, followed by Cathay Financial with 84,080 lots. The rest were Winbond, Compal, and Yuanta Taiwan 50 (0050).

The top five stocks bought by foreign investors were led by First Financial with 64,068 lots, followed by Chang Hwa Bank with 61,779 lots. The rest were Taishin Shin Kong Financial, Taiwan Business Bank, and E.Sun Financial.

Taishin Investment Advisory Vice President Huang Wen-ching told CNA that confidence had clearly returned to the Taiwan stock market today. However, there have been no significant changes in recent fundamentals. The main reason for the prior correction was that stock prices had risen significantly, leading to a high deviation from the moving average, making the market susceptible to consolidation upon any international disturbance. With the rebound in US stocks, the Taiex also stabilized today.

He pointed out that in the short term, the Taiex still has a chance to move upward. However, it is necessary to observe changes in US monetary policy, the performance of US tech stocks, and the US inflation data to be released this Wednesday, all of which will affect the market's short-term direction. The long-term bullish trend remains unchanged.

However, the new Federal Reserve Chair, Kevin Warsh, will preside over his first Federal Open Market Committee (FOMC) meeting in mid-June. His remarks could become a significant variable affecting market trends. Huang believes it is crucial to pay attention to his views on interest rate policy and the economic outlook. (Editor: Yang Kai-hsiang) 1150609