Formosa Petrochemical Stock Plummets as Major Investors Liquidate Holdings

Formosa Petrochemical Corp. (FPCC) experienced a sharp decline in its stock price, with investors reporting significant losses. The drop followed a substantial sell-off of approximately 90,000 shares by foreign and major investors on the previous day. As of 10:45 AM, FPCC's stock was trading down NT$0.73 at NT$8.97. Many retail investors expressed dismay, with some lamenting potential double-digit losses for the year. Analysts characterized the sell-off as a standard profit-taking strategy at a market peak, urging investors to be cautious about buying into the dip. Despite the stock's performance, FPCC's financial reports indicate resilience. The company reported a net profit of NT$671 million for May, with earnings per share of NT$0.18. Further financial boosts are anticipated in June from the disposal of FPCC's holdings in China Engineering, estimated to contribute around NT$300 million. Analysts noted that foreign investors had accumulated approximately 87,000 shares in June and added another 45,000 shares in July, with an estimated average cost around NT$8 per share. The significant sell-off on the previous day, totaling 56,000 shares by foreign investors, has led to warnings for investors to avoid catching a falling knife.