Formosa Petrochemical shares volatile after large stock sale; investors question trading patterns

Formosa Petrochemical (1314) announced the sale of 2.35 million shares in CTBC Financial Holding (2515), a transaction valued at approximately $307 million New Taiwan dollars. The company stated the divestment aims to enhance capital utilization efficiency.

The shares were classified as financial assets measured at fair value through other comprehensive income. The proceeds from this disposal will be recorded under equity on the balance sheet, with no immediate impact on Formosa Petrochemical's current earnings.

Despite the company's strategic move, Formosa Petrochemical's stock experienced a dramatic intraday swing. After opening at $10.70 NT dollars, the stock reversed course, falling to $9.85 NT dollars by 9:30 AM. This sharp decline occurred on a trading volume exceeding 164,000 shares, representing a price fluctuation of over 12% within a short period.

The market reaction has fueled speculation among retail investors, with discussions on social media questioning whether major foreign and domestic institutional investors engaged in short-term trading strategies. Analysts suggest that while the stock has shown recent strength, investors should remain cautious of potential selling pressure and closely monitor the company's June revenue performance.