PSMC Stock Falls 5%, Drops Below Key Moving Average

Shares of Powerchip Semiconductor Manufacturing Corp. (PSMC) experienced a significant downturn today, falling over 5% and slipping below the 60-day moving average. The stock opened higher but quickly reversed, reaching a low of NT$67.1 by mid-morning. As of 10:45 AM, the stock was trading at NT$67.1, down 5.23%, with a trading volume of 91,000 shares.

This price drop occurred despite a substantial net inflow from major institutional investors on the previous day. Foreign investors were particularly active, purchasing 38,000 shares and ending a five-day selling streak. Domestic proprietary traders also contributed, buying 2,008 shares, marking their second consecutive day of net purchases. In total, institutional investors acquired 40,104 shares.

PSMC is set to go ex-dividend this Thursday, distributing a cash dividend of NT$0.23 per share, totaling over NT$1 billion. The recent influx of institutional capital before the ex-dividend date suggests a strategic bet on the stock filling the dividend, a phenomenon where the share price rises to cover the dividend payout before or on the ex-dividend date.