Foreign Investors Buy NT$41.5 Billion, Favoring UMC and Financial Stocks; Futures Turn Bullish with Weekly Net Buy of NT$110.7 Billion

Taiwan's stock market rose today (28), led by TSMC (2330-TW) gaining momentum during the session, which boosted silicon photonics, CCL, and passive component stocks. The market closed up 356.23 points at 46,331.45, with trading value reaching NT$1.023 trillion. All three major institutional investors were net buyers, collectively purchasing NT$46.817 billion worth of stocks.

In addition to UMC (2303-TW), foreign investors showed strong preference for large financial stocks such as First Financial Holding (2892-TW), Mega Financial Holding (2886-TW), and Hua Nan Financial Holding (2880-TW).

In the cash market today, foreign investors bought NT$41.587 billion, investment trusts bought NT$959 million, and proprietary traders bought NT$4.27 billion, totaling a net institutional buy of NT$46.817 billion. Foreign investors have been net buyers for three consecutive days, pushing the index above the 46,000 threshold. For the week, the market gained 1,107.16 points, during which foreign investors bought a net NT$110.772 billion.

In the futures market, foreign investors' net transaction position was +1,137 contracts (long), while their net open interest remained short at -83,655 contracts.

Top foreign investor buys in the集中 market included UMC, First Financial, Mega Financial, Innolux, Nan Ya Plastics, AU Optronics, Hua Nan Financial, Taiwan Glass, King Yuan Electronics, and Taiwan Business Bank. Top sells included Winbond, Aerospace Industrial Development Corporation, China Airlines, Pou Chen, Yang Ming, Cando, China Steel, Tatung, Hon Hai Precision, and Wistron.

Top buys by investment trusts included Nan Ya Plastics, Chang Hwa Bank, CTBC Financial, Taishin Financial, Genesis Photonics, Cathay Financial, King Yuan Electronics, MiTAC, Fubon Financial, Inventec, and Walsin Technology. Top sells included Winbond, Mega Financial, Hua Nan Financial, WPG Holdings, Cheng Shin Rubber, TSMC, Runmei New, Yuanta Financial, Greatcare, and Uni-President.

Top buys by proprietary traders included Innolux, UMC, Taiwan Glass, AU Optronics, Silicon Integrated Systems, Walsin Technology, and Powertech Technology. Top sells included Winbond, Aerospace Industrial Development Corporation, Nanya Technology, Hsin Chong, Nan Ya Plastics, Hon Hai Precision, EVA Airways, Wan Hai Lines, Hua Nan Financial, and Kuo Chiao.

Senior securities analyst Huang Han-cheng noted that trading volume remains a key indicator. While the market may break higher after consolidation, the current rally could be a "sell-off wave" given foreign investors' cautious stance and 83,000 short contracts in futures. Investors should monitor their cash-to-stock ratio and gradually shift toward cash positions.