Three Major Institutions Sell Over TWD 70.8 Billion, Breaking Quarterly Line; Foreign Investors Continue Selling Innolux and Powerchip, Shift to Traditional Stocks

Taiwan's stock market continued to fall today (19th), closing down 589 points with reduced volume at 44,719, consecutively losing the 10-day and quarterly moving average lines. All three major institutional investors took net selling positions. Foreign investors showed divergent strategies between futures and spot markets—continuing heavy spot selling while covering long futures positions.

In the spot market, Innolux (3481-TW) and Powerchip (6770-TW) were again targeted for large-scale withdrawals, with adjustment volumes reaching 61,000 and 49,000 shares respectively—totaling nearly 110,000 shares. Conversely, traditional sector stocks including Yang Ming (2609-TW), Evergreen (2603-TW), Uni-President (1216-TW), and Dah Chong Steel (8039-TW) received fresh inflows.

The three major institutions collectively sold TWD 70.848 billion today. Foreign investors accounted for TWD 41.639 billion in net sales, marking their second consecutive day of net selling. Proprietary traders sold TWD 17.118 billion, also for the second consecutive day, while investment trusts turned sellers with TWD 12.091 billion.

Regarding Taiwan Stock Index Futures (TX Futures), foreign investors continued covering long positions for the seventh consecutive session, reducing open short contracts to 81,501 lots.

Foreign investors once again focused on withdrawing funds from Innolux (3481-TW) and Powerchip (6770-TW), ranking first and second in net selling, with 61,000 and 49,000 shares sold respectively. Other major reductions were seen in financial groups, including Taishin & SK Life Insurance (2887-TW), E.Sun Financial (2884-TW), Yuanta Financial (2885-TW), CTBC Financial (2891-TW), and Capital Securities (2883-TW). All five entered the top ten most sold stocks, with a combined adjustment of 105,000 shares.

On the buy side, foreign investors concentrated on shipping stocks—Yang Ming (2609-TW) and Evergreen (2603-TW)—collectively acquiring nearly 30,000 shares. Other traditional stocks such as Uni-President (1216-TW) and Dah Chong Steel (8039-TW) were also favored. However, views on the panel sector remained divided: despite heavy selling of Innolux, foreign investors added approximately 8,000 shares in Chi Mei (6116-TW).

Proprietary traders also increased their position in Chi Mei by about 500 shares while selling a combined 7,000 shares of Innolux and Powerchip. Investment trusts took an opposing stance to foreign investors, countering the trend by aggressively buying E.Sun Financial and Taishin & SK Life Insurance, adding approximately 55,000 shares in total.