Taiwan Stock Market Rebounds with Over 600-Point Lower Shadow; Foreign Investors Buy Back NT$8 Billion, Favoring Innolux and UMC; Three Major Institutions Jointly Buy Financial Stocks

On the 27th, Taiwan's stock market (Taiex) plunged over 600 points during morning trading, reaching a low of 42,969.48. However, supported by TSMC's stabilization and strength in financial stocks, the index closed down only 20.65 points (0.05%) at 43,634.19, forming a long lower shadow of 664.71 points. It failed to reclaim the 20-day moving average (quarter-line), and trading volume shrank to NT$717.687 billion, the lowest since April 7.

Foreign investors turned net buyers today, with a net purchase of NT$8.04 billion. Both foreign and domestic institutional investors showed preference for financial stocks.

Analyzing the trading activities of the three major institutional investors today: foreign investors turned buyers with a net purchase of NT$8.04 billion; investment trusts were sellers with a net sale of NT$279 million; proprietary traders sold NT$7.857 billion, marking their second consecutive day of net selling. The three major institutions collectively recorded a net sale of NT$96 million.

Foreign investors favored financial stocks today, buying 24,000 lots of Taichung Bank, 21,000 lots of Taiwan Business Bank, 16,000 lots of Hua Nan Financial Holding, and 15,000 lots of Yuanta Financial Holding. They also bought 56,000 lots of Innolux, 43,000 lots of United Microelectronics Corporation (UMC), 19,000 lots of EVA Airways, 18,000 lots of Nan Ya Plastics, 17,000 lots of China Steel, 17,000 lots of Taiwan Cement, and 15,000 lots of Far Eastern New Century.

On the selling side, foreign investors reduced positions in Chihong Taiwan by 11,000 lots, Winbond by 10,000 lots, Hanxiao by 10,000 lots, CPC Corporation by 9,711 lots, AU Optronics by 7,943 lots, Kuo Chiao by 6,806 lots, CTBC Financial Holding by 6,243 lots, Formosa Plastics by 5,066 lots, China Engineering & Construction by 4,485 lots, and Hsin Chong by 3,532 lots.

Investment trusts also favored financial stocks today, buying 6,506 lots of Mega Financial Holding, 3,955 lots of Hua Nan Financial Holding, 1,865 lots of Mega International Commercial Bank, and 1,777 lots of Shanghai Commercial & Savings Bank. In other stocks, they bought 4,459 lots of China Airlines, 3,219 lots of Wistron, 2,551 lots of Quanta Computer, 2,184 lots of Far Eastern New Century, 1,575 lots of Uni-President, and 1,347 lots of EVA Airways.

The top sell by investment trusts was against foreign investors' moves, selling 10,000 lots of UMC—the largest. They also sold 5,624 lots of Powerchip, 4,391 lots of Walsin Technology, 3,991 lots of Yageo, 3,433 lots of Nan Ya Plastics, 2,905 lots of Dah Ching Steel, 2,000 lots of瑞軒, 1,946 lots of TPC Wire & Cable, 1,285 lots of Tong Hsin Electric, and 1,187 lots of Crystalwise.