DistantNews
Support us
🇹🇼 Taiwan /Economy & Trade

Formosa Chemicals Stock Surges to Daily Limit on Ex-Dividend Date

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

News Sources not specified New plan
  • Formosa Chemicals & Fibre (1326) saw its stock price surge to its daily limit on its ex-dividend date.
  • Investors celebrated the stock's performance, which included a dividend payout of NT$0.6 per share.
  • Analysts attribute the rise to improving petrochemical market conditions, asset value, and institutional buying.

Formosa Chemicals & Fibre (1326) experienced a dramatic surge on its ex-dividend date, with its stock price hitting the daily upper limit and eliciting cheers from retail investors. The company distributed a cash dividend of NT$0.6 per share today, and the stock opened lower before climbing sharply.

Too happy, it filled the dividend and hit the limit

— investorExpressing joy over the stock's performance on its ex-dividend date.

By around 10 a.m., the stock had experienced a significant volume increase and rocketed to NT$57.7, its highest point for the day. Investors expressed elation, with comments like "So happy, it filled the dividend and hit the limit." At one point, the trading volume reached 37,600 shares.

How could this happen?

— retail investorExpressing surprise at the stock's decline the previous day.

This strong performance follows a volatile previous day, where the stock reached NT$59.2 before falling back to close at NT$53.1, surprising many retail investors who lamented the loss of gains. The subsequent jump to the daily limit today was met with enthusiastic responses, with some calling it a "great comeback."

Great comeback

— retail investorDescribing the stock's sharp rise on the ex-dividend date.

Analysts suggest the stock's rally is driven by several factors: a recovery in the petrochemical sector, potential asset value appreciation, and strategic buying by institutional investors. There is a prevailing market sentiment that the worst may be over for the "Formosa Plastics fleet" of companies. Policies in China aimed at phasing out inefficient production capacity are expected to improve supply-demand dynamics. However, analysts caution that significant selling pressure remains, advising investors to be wary of chasing the price higher.

The Formosa fleet is great

— retail investorPraising the performance of the Formosa group of companies.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog