Foreign investors reduce holdings in Taiwanese stocks by NT$54.7 billion, heavily selling active ETFs

(CNA, Taipei, July 7) The Taiwanese stock market plummeted by 1077 points today, marking the 8th largest single-day drop in history, falling below the monthly moving average to 15710 points. Proprietary traders sold NT$48.733 billion, and foreign investors reduced their holdings by NT$54.731 billion. Foreign investors primarily sold off the 'panel twins' and active ETFs. Statistics show that foreign investors and proprietary traders have been net sellers for four consecutive days, while investment trusts were net buyers of NT$8.773 billion today, marking their 11th consecutive day of net buying.

Regarding net positions in Taiwan stock futures, the three major institutional investors reduced their net short positions by 2101 contracts to 8062 contracts today. Among them, foreign investors reduced their net short positions by 45 contracts, still exceeding 80,000 contracts to 80,042 contracts.

Observing the ranking of stocks bought and sold by foreign investors, according to statistics from the Taiwan Stock Exchange, foreign investors bought over 10,000 shares in nine stocks today: Fuhwa FTSE REIT, Taishin-SinoGold, KGI ETF, Yuanta/PIMCO US Growth, Cathay Financial Holding, EVA Air, Taiwan Business Bank, E.SUN Financial Holding, and First Financial Holding.

Stocks sold by foreign investors exceeding 100,000 shares today included Active Uni-50, Active Uni Taiwan Growth, and Innolux, reaching 148,500 shares, approximately 120,000 shares, and 113,900 shares, respectively.

Other stocks among the top 10 sold by foreign investors included AU Optronics, Active Fuhwa Future 50, Active Uni Global Innovation, Active Fubon Taiwan Dragon Glory, Yuanta Taiwan 50, Active Cathay Momentum High Dividend, and Active Yuanta Technology Innovation.

Huang Wen-ching, General Manager of Taishin Securities Investment Advisory, told reporters in a phone interview that the upward momentum of the Taiwanese stock market weakened during trading, and the market was in a passive state. The US dollar has been relatively strong recently, and foreign capital has not flowed back. Foreign investors continued to rotate stocks in July, with domestic capital being the main driver of the Taiwanese stock market recently. However, domestic capital also continued to rotate stocks, leading to sector rotation and significant differences in individual stock performance.

Futures analysts commented that the Taiwanese stock market fluctuated by 1535 points today. This sharp sell-off has put pressure on margin financing, causing market sentiment to fluctuate. The short-term market is expected to continue to fluctuate, with chips being reshuffled. The broader market may continue to pull back and correct, awaiting a rebound in leading high-priced stocks and stabilization of market sentiment. (Editor: Chang Chun-mao) 1150707

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