Foreign Investments Sell Over 140 Billion, Taiwan Semiconductor Withdrawals Reach 310 Billion
Table of Contents
You might want to know
- Why is foreign investment rapidly selling Taiwan Semiconductor stocks?
- What are the implications of these large-scale withdrawals for Taiwan's stock market?
Main Topic
Today, Taiwan Semiconductor Manufacturing Company (TSMC) experienced a notable decline, which, along with other major stocks, contributed to the Taiwan stock index closing 148.27 points lower at 27,063.68 points. The trading volume was significant at 452.508 billion NT dollars. Foreign investors were net sellers to the tune of 153.03 billion NT dollars, spearheading this sell-off with over 140.94 billion NT dollars in disposals. Notably, foreign interests have shifted from buyers to sellers, creating a ripple effect across the market.
The mutual funds, maintaining their selling stance, offloaded stocks worth 43.34 billion NT dollars. Conversely, dealers were net buyers with acquisitions amounting to 31.26 billion NT dollars. Specifically, foreign investors sold over 9,910 shares of TSMC, resulting in a withdrawal of approximately 140 billion NT dollars over two trading days, totaling more than 310 billion NT dollars in equity removal from TSMC alone.
The futures market also saw significant activities, with foreign investors engaging in aggressive short-selling tactics. Today's trades in futures by foreign entities accounted for 5,692 contracts, and the net open positions amounted to 30,405 contracts.
On the forex front, the New Taiwan dollar weakened against the US dollar, closing 1.5 cents down at 30.535, with a transaction volume of 1.015 billion US dollars. The currency began the day at 30.560 and fluctuated between a high of 30.484 and a low of 30.585.
In the main market today, the stocks that foreign investors bought the most include Innolux, Taishin Financial, E Sun Financial, UMC, CTCI Corporation, Fubon Financial Holding, Chang Hwa Bank, Formosa Plastics, CTBC Financial Holding, and Quanta Computer. Those offloaded significantly include Winbond Electronics, Vanguard International Semiconductor, Taiwan Glass Industry Corporation, Mitac International, TSMC, Macronix International, China Steel, Hon Hai Precision Industry (Foxconn), Etron, and Nanya Technology.
Mutual funds focused on purchasing shares in companies like Taiwan Glass, Winbond, Nan Ya PCB, Yageo Corporation, Cinda Securities, etc., while selling heavily in Fubon, CTBC Financial, UMC, Taishin Financial, and others.
Dealers were seen buying shares massively in Vanguard International, Walsin Lihwa Corporation, Wistron, Tatung Company, Realtek Semiconductor, and selling heavily in HTC, Far Eastern International Bank, Ingenic Semiconductor, and several other companies.
Senior securities analyst Jian Boyi notes that despite the increased risks as Taiwan stocks peak, today's stock performance did not break the gap opened by the increase seen yesterday, nor fall below the 5-day moving average, indicating that the bullish trend remains intact.
Another seasoned analyst, Huang Hancheng, observes that the market is currently in a high-level shock pattern. As various listed companies announce their latest revenue figures, investors should focus on stocks displaying robust revenue growth and strength as potential entry points.
Key Insights Table
| Aspect | Description |
|---|---|
| Foreign Sales | Foreign investors have moved from buyers to sellers with significant sales in TSMC shares. |
| Currency Impact | New Taiwan dollar weakened, reflecting concerns over extensive sell-offs. |
Afterwards...
Looking ahead, it's crucial for market participants to track the evolving trends in foreign capital flows and strategize based on potential impacts on the broader economic environment. Technological advancements and market volatility would present fresh opportunities and challenges that could influence investment decisions significantly.