Foreign Investors Sell Short Over NT$18.7 Billion, Short Futures Positions Break 90,000 Contracts, Targeting Two Sectors for 150,000 Shares Withdrawal

Taiwan's stock market stood out among Asian peers today, closing at 43,386 points, up 266 points, firmly above the 10-day moving average. However, foreign investors simultaneously increased short positions in both futures and spot markets, adding over 7,000 short contracts, pushing net short positions above 90,000 contracts, a historical high. In the spot market, they adjusted positions in second-tier foundry and panel giants, including UMC, Powerchip, Innolux, and AU Optronics, collectively selling 150,000 shares.

The three major institutional investors collectively sold short NT$18.78 billion today. Foreign investors turned net sellers, offloading NT$19.19 billion, while investment trusts continued their buying streak for the 29th consecutive day, purchasing NT$21.07 billion. Proprietary traders sold NT$2.065 billion, marking the 7th consecutive day of net selling. In the Taiwan Index Futures market, foreign investors added 7,523 short contracts, bringing open short positions back to 90,038 contracts. With foreign investors shorting both futures and spot markets, further rebound in the Taiwan stock market faces increased pressure.

UMC (2303-TW) was the top foreign sell target, with 89,000 shares sold. Powerchip (6770-TW), another foundry firm, saw about 33,000 shares sold. Both Innolux (3481-TW) and AU Optronics (2409-TW) were adjusted, totaling 33,000 shares sold. Other stocks like Taiwan Cement (1101-TW), Changhua Bank (2801-TW), and First Financial Holding (2892-TW) each saw over 22,000 shares sold.

On the buy side, foreign investors favored ETFs, with 9 out of the top 10 buy targets being ETFs, including active and index-type ETFs. They heavily bought the "Active United Taiwan Stock Growth" (00981A-TW), purchasing nearly 120,000 shares. Others such as "Active United Upgrade 50" (00403A-TW), "Active Fuhwa Future 50" (00991A-TW), "KGI Taiwan TOP50" (009816-TW), "Yuanta Taiwan 50" (0050-TW), "Active Fubon Taiwan Dragon" (00405A-TW), "Active QY Capital Tech Innovation" (00992A-TW), and "Active Cathay Dynamic Yield" (00400A-TW) saw purchases ranging from 14,000 to 89,000 shares.

Notably, foreign investors also increased positions in "Yuanta Taiwan 50 Inverse 1" (00632R-TW), buying 91,000 shares, highlighting their hedging strategy amid the recent sharp market rebound.

Investment trusts took the opposite stance, buying 12,000 shares of UMC and adding around 4,000 shares of Yuanta Taiwan 50. Proprietary traders aligned with foreign investors, selling nearly 3,000 shares of Innolux.