Approaching 45,000-Point Milestone: Foreign Investors Buy Back TWD 3.7 Billion, Targeting Container Shipping and DRAM Leaders

Taiwan's stock market showed volatile movement today (20th), briefly turning negative before closing up 214.39 points (0.48%) at 44,933.74, supported by TSMC's gains and strong performance in the shipping sector. Trading volume decreased to TWD 792.96 billion. Notably, foreign investors returned as net buyers, purchasing TWD 3.78 billion worth of shares, with significant inflows into the 'Big Three' container shippers and 'Twin DRAM Leaders'.

Analyzing the trading activities of the three major institutional investors today, foreign investors resumed buying with a net purchase of TWD 3.78 billion. However, both investment trusts and proprietary traders remained on the selling side—investment trusts sold TWD 1.21 billion (second consecutive day of net selling), while proprietary traders sold TWD 6.11 billion (third consecutive day of net selling). Combined, the three major institutions recorded a net sale of TWD 3.54 billion.

Foreign investors have been consistently increasing positions in container shipping stocks. Today, they bought 54,000 shares of Yang Ming, 17,000 shares of Wan Hai, and 16,000 shares of Evergreen. Over the past five days, they accumulated 125,700 shares in Yang Ming; over two days, 19,200 shares in Wan Hai; and over six days, 73,700 shares in Evergreen.

Today, foreign investors also increased holdings in the DRAM sector, purchasing 26,000 shares of Nanya Technology and 23,000 shares of Winbond Electronics. Other notable buys included China Steel (36,000 shares), United Microelectronics Corporation (26,000 shares), Taiwan Cement (21,000 shares), Han Hsiang Aerospace (21,000 shares), Mega Financial Holding (18,000 shares), and Far Eastern New Century (17,000 shares).

On the selling side, foreign investors reduced positions in MediaTek by 35,000 shares, Taishin & Shin Kong Financial by 19,000 shares, Walsin Technology by 18,000 shares, CTBC Financial by 14,000 shares, AU Optronics by 13,000 shares, Compal Electronics by 11,000 shares, E.Sun Financial by 10,000 shares, Casetek Holdings by 8,564 shares, Nan Ya Plastics by 8,559 shares, and Lite-On Technology by 7,749 shares.

Foreign investors also reduced exposure to several ETFs, selling 18,000 shares of 009816 KGI Taiwan Top 50, 15,000 shares of 00403A Capital Appreciation Unified Upgrade 50, 13,000 shares of 00631L Yuanta Taiwan 50 2x Bull, 10,000 shares of 0050 Yuanta Taiwan 50, and 10,000 shares of 00981A Capital Appreciation Uni-Share Growth.

Investment trusts increased positions in Far Eastern New Century (5,788 shares), Taishin & Shin Kong Financial (5,342 shares), Capital Mutual Fund (4,698 shares), Dayi Industrial (3,767 shares), and Nan Ya Plastics (3,674 shares). Other buy targets included Ruentex International Trade, Hua Nan Financial, Corning Environmental, Lite-On Technology, and E.Sun Financial.

Meanwhile, investment trusts heavily sold UMC, reducing their position by 28,000 shares. They also sold 3,100 shares of Chang Wah, 3,069 shares of Winbond Electronics, 3,004 shares of ASE, and significantly reduced holdings in Hua Nan Financial, Mega Financial, WPG Holdings, MSI, Silicon Integrated Systems, and Macronix, all entering the top ten sell list.