Foreign Investors Buy Heavily, But Slash Financial Stocks; First Financial Hit Hardest

Taiwan's stock market staged a remarkable comeback on Thursday, with the main index surging by 1347 points, marking the fifth-largest single-day gain in its history. This rally was spearheaded by a strong performance in the technology sector, notably MediaTek, which saw numerous companies hit their upper trading limits. Despite this overall positive movement, foreign investors injected a substantial NT$60.3 billion into the market, their actions revealed a distinct preference for certain sectors over others.

While the broader market celebrated, foreign investors heavily divested from financial stocks. The most significant impact was felt by First Financial Holding, which experienced a massive sell-off of over 200,000 shares by foreign investors within a mere two-day period. This aggressive selling pressure led to a consecutive decline in its stock price, further exacerbated by a trading volume of 85,700 shares on Thursday, closing at NT$27.7.

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Foreign investors bought NT$60.3 billion in stocks, heavily targeting financial stocks! First Financial Holding sold over 200,000 shares in 2 days, the worst hit.

Other financial institutions also bore the brunt of foreign investor divestment, with Taiwan Shin Kong Financial Holding, Mega Financial Holding, and Yuanta Financial Holding appearing on the list of top 10 sold stocks. This selective selling by foreign capital suggests a strategic shift, potentially driven by global economic outlooks or specific market analyses that favor certain industries while deeming others less attractive for immediate investment. The divergence between the overall market rally and the targeted selling in the financial sector highlights the complex dynamics at play in Taiwan's stock exchange.

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Foreign investors sold the top 10 stocks: First Financial (2892) 71,794 shares, Taiwan Shin Kong Financial (2887) 34,821 shares, Mega Financial (2883) 24,682 shares, Yuanta Financial (2884) 11,669 shares.