Million shareholders cry foul! Investment trusts sell NT$12 billion in stocks, Taiwan market falls below quarterly line; UMC hit hardest with over 20,000 shares sold

Taiwan's stock market faced a sharp decline on Wednesday, August 19, with the main index falling below its quarterly moving average and investment trusts offloading significant holdings.

The market saw a dramatic intraday drop of 999 points, briefly touching 44308 points. While some support emerged from AI, optical, shipping, food, and tourism stocks, the overall index closed down 589 points. This downturn was exacerbated by investment trusts shifting from net buyers to net sellers, divesting NT$12.091 billion (approximately $370 million USD) worth of shares.

UMC, a semiconductor manufacturer with over a million shareholders, bore the brunt of the sell-off, with investment trusts shedding over 20,000 shares. This significant selling pressure resulted in UMC's stock price dropping by 2.94% to close at NT$115.5, accompanied by a surge in trading volume to over 110,000 shares.

Other major stocks heavily sold by investment trusts included Powerchip Semiconductor Manufacturing, ASE Technology Holding, Winbond Electronics, and King Yuan Electronics. The report also lists the top 10 stocks sold by investment trusts, highlighting the extent of the market correction.