Foreign investors pour $2.1 billion into Taiwan stocks, but heavily sell UMC

Taiwan's stock market staged a historic rally on Friday, with the main index soaring by 3186 points to reach a new record high. The surge was significantly fueled by substantial foreign investment, which amounted to NT$67.55 billion (approximately $2.1 billion). This influx of capital propelled the market forward, with 202 stocks, including TSMC, hitting their daily upper limit. However, the day's trading also revealed a stark contrast in foreign investor sentiment towards specific companies. While overall investment was strong, foreign funds were aggressive sellers of United Microelectronics Corporation (UMC), offloading over 21,658 shares. This made UMC the most heavily sold stock by foreign investors among the top 10 decliners. Other major stocks sold by foreign investors included Formosa Plastics, Innolux, Chi Mei Corporation, and Nanya Technology. Despite the significant selling pressure from foreign institutions, UMC's stock price managed to close at its upper limit. This resilience was attributed to strong support from domestic investors, who absorbed the sell-off and kept the stock from falling. The article also notes that Taiwan's GDP for the second quarter was revised upwards to 12.92%, with the first half of the year showing a 13.72% growth, marking the strongest performance in half a century.