Foreign Investors Strongly Buy Financial Stocks Despite Selling TaiShin Financial as Stock Market Gains
On the 14th of this month, the Taipei stock market opened with a significant drop, with the index falling more than 100 points at one stage. Despite this early setback, the market closed with a gain, ending at 22,975.29 points, which represents an increase of 73.65 points or 0.32%. The total transaction value for the day shrank to 314.371 billion New Taiwan dollars. Despite the volatility in the stock market, the three major institutional investors collectively bought a net amount of 3.755 billion New Taiwan dollars. Foreign investors were very active, making notable acquisitions in Shin Kong Financial (stock code 2888-TW) and CTBC Financial Holding (stock code 2891-TW), with both stocks seeing net purchases of over 10,000 shares each. However, TaiShin Financial (stock code 2887-TW) saw the largest net sell by foreign investors, with 18,500 shares sold, marking it as the top sold stock by foreign investors on the Taiwanese market today.
Throughout the day, the electronic stock index fluctuated around the flat line, ultimately rising by 0.34%. This sector alone accounted for 70.5% of the total market transaction value. Financial stocks also experienced an uptick, increasing by 0.24% and accounting for 3.03% of the total market transaction value. In addition, the construction stock index rose 0.3%, comprising 1.52% of the overall market transaction value.
In the main board market, the three types of institutional investors displayed varied behaviors. Foreign investors ended up with a net sell of 1.608 billion New Taiwan dollars. In contrast, dealers were net buyers with a total of 275 million New Taiwan dollars, and investment trusts also net bought a considerable 5.088 billion New Taiwan dollars. Thus, the cumulative net buying by these three key institutional sectors amounted to 3.755 billion New Taiwan dollars. In the futures market, as of October 14, foreign investors held a net long position of 2,778 contracts, while the number of open contracts showed a net short position of 39,071 contracts.
In currency trading, the exchange rate of the New Taiwan dollar against the US dollar closed at 32.168 NT dollars, marking an appreciation of 0.14 NT dollars. The transaction volume reached approximately 888 million US dollars. Throughout the morning, the New Taiwan dollar opened at 32.190 NT dollars, reaching a high of 32.157 and a low of 32.214.
Within the centralized market, foreign investors showed heightened interest in specific stocks. The most noteworthy purchases included Shin Kong Financial, CTBC Financial, Jenteh, AUO, Radiant Opto-Electronics, Innolux, Zhen Ding Technology, Chunghwa Picture Tubes, China Steel Structure, and King Yuan Electronics. Conversely, the stocks that saw the most significant selling action by foreign investors included TaiShin Financial, Gembio, Quanta Money Fund, Hon Hai Precision Industry (Foxconn), Taiwan Microelectronics Corporation - DR, EVA Air, Taiwan Semiconductor Manufacturing Company (TSMC), Dynapack, China Steel Corporation, and Sunonwealth Electric Machine Industry.
Similarly, investment trusts focused their buying efforts on CTBC Financial, EVA Air, United Microelectronics Corporation (UMC), International Bills Finance Corporation, Yuanta Financial, Uni-President Enterprises Corporation, Asia Cement, Hon Hai Precision Industry (Foxconn), Far Eastern New Century, and Cheng Shin Rubber Industry. However, they sold off shares in Wan Hai Lines, Kindom Development, Compeq Manufacturing, Merida Industry, Far Eastern International Bank, Dah Lee Industrial, Taian Insurance (MetLife Taiwan), Sunown, Yang Ming Marine Transport Corporation, and Aerospace Industrial Development Corporation.
Dealers were active in the market as well. They primarily purchased shares of TaiShin Financial, E. Sun Financial Holding, Yuanta Financial, CTBC Financial, Wistron, Century Iron and Steel Industrial, Mega Financial Holding, Far Eastern New Century, Walsin Lihwa Corp, and Compal Electronics. On the other hand, they sold shares mainly in Shin Kong Financial, Hong Chuang, and HTC Corporation.
According to market analyst Jian Bo Yi, the current market scenario is characterized by a thriving electronic stock sector, which is likely to continue playing a pivotal role as a market leader for the bulls. The market's technical indicators, including the KD and RSI indices, show a bias towards strong market performance, suggesting limited downside risk. As the revenue figures for September are being released, it is crucial to pay close attention to the upcoming third-quarter financial reports, which may reveal the extent of the exchange losses experienced by these companies.
In conclusion, while today's market provided a mixed bag of results, the resilience and strategic buying patterns displayed by institutional investors indicate a cautiously optimistic stance towards the future. The financial sector saw significant activity with contrasting approaches from foreign investors and local players, underlining the dynamic nature of investment strategies currently shaping the Taipei stock market. As we progress further into the earnings season, investors will be closely monitoring the developments and adjusting their portfolios accordingly, emphasizing the need for vigilance and adaptability in this ever-evolving market landscape.
Throughout the day, the electronic stock index fluctuated around the flat line, ultimately rising by 0.34%. This sector alone accounted for 70.5% of the total market transaction value. Financial stocks also experienced an uptick, increasing by 0.24% and accounting for 3.03% of the total market transaction value. In addition, the construction stock index rose 0.3%, comprising 1.52% of the overall market transaction value.
In the main board market, the three types of institutional investors displayed varied behaviors. Foreign investors ended up with a net sell of 1.608 billion New Taiwan dollars. In contrast, dealers were net buyers with a total of 275 million New Taiwan dollars, and investment trusts also net bought a considerable 5.088 billion New Taiwan dollars. Thus, the cumulative net buying by these three key institutional sectors amounted to 3.755 billion New Taiwan dollars. In the futures market, as of October 14, foreign investors held a net long position of 2,778 contracts, while the number of open contracts showed a net short position of 39,071 contracts.
In currency trading, the exchange rate of the New Taiwan dollar against the US dollar closed at 32.168 NT dollars, marking an appreciation of 0.14 NT dollars. The transaction volume reached approximately 888 million US dollars. Throughout the morning, the New Taiwan dollar opened at 32.190 NT dollars, reaching a high of 32.157 and a low of 32.214.
Within the centralized market, foreign investors showed heightened interest in specific stocks. The most noteworthy purchases included Shin Kong Financial, CTBC Financial, Jenteh, AUO, Radiant Opto-Electronics, Innolux, Zhen Ding Technology, Chunghwa Picture Tubes, China Steel Structure, and King Yuan Electronics. Conversely, the stocks that saw the most significant selling action by foreign investors included TaiShin Financial, Gembio, Quanta Money Fund, Hon Hai Precision Industry (Foxconn), Taiwan Microelectronics Corporation - DR, EVA Air, Taiwan Semiconductor Manufacturing Company (TSMC), Dynapack, China Steel Corporation, and Sunonwealth Electric Machine Industry.
Similarly, investment trusts focused their buying efforts on CTBC Financial, EVA Air, United Microelectronics Corporation (UMC), International Bills Finance Corporation, Yuanta Financial, Uni-President Enterprises Corporation, Asia Cement, Hon Hai Precision Industry (Foxconn), Far Eastern New Century, and Cheng Shin Rubber Industry. However, they sold off shares in Wan Hai Lines, Kindom Development, Compeq Manufacturing, Merida Industry, Far Eastern International Bank, Dah Lee Industrial, Taian Insurance (MetLife Taiwan), Sunown, Yang Ming Marine Transport Corporation, and Aerospace Industrial Development Corporation.
Dealers were active in the market as well. They primarily purchased shares of TaiShin Financial, E. Sun Financial Holding, Yuanta Financial, CTBC Financial, Wistron, Century Iron and Steel Industrial, Mega Financial Holding, Far Eastern New Century, Walsin Lihwa Corp, and Compal Electronics. On the other hand, they sold shares mainly in Shin Kong Financial, Hong Chuang, and HTC Corporation.
According to market analyst Jian Bo Yi, the current market scenario is characterized by a thriving electronic stock sector, which is likely to continue playing a pivotal role as a market leader for the bulls. The market's technical indicators, including the KD and RSI indices, show a bias towards strong market performance, suggesting limited downside risk. As the revenue figures for September are being released, it is crucial to pay close attention to the upcoming third-quarter financial reports, which may reveal the extent of the exchange losses experienced by these companies.
In conclusion, while today's market provided a mixed bag of results, the resilience and strategic buying patterns displayed by institutional investors indicate a cautiously optimistic stance towards the future. The financial sector saw significant activity with contrasting approaches from foreign investors and local players, underlining the dynamic nature of investment strategies currently shaping the Taipei stock market. As we progress further into the earnings season, investors will be closely monitoring the developments and adjusting their portfolios accordingly, emphasizing the need for vigilance and adaptability in this ever-evolving market landscape.
Last edited at：2024/12/16
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