UMC's stock rally falters as investors sell off, disappointing 860,000 shareholders

Taiwan's stock market experienced a volatile trading session on Monday, with the index surging by as much as 950 points before paring gains to close up 428 points at 44,999. The rally was initially fueled by positive news regarding a de-escalation of tensions between the US and Iran, which eased concerns over the Strait of Hormuz dispute.

However, the momentum faltered as major electronics and financial stocks, including GlobalWafers and Nan Ya Printed Circuit Board, reversed their gains. UMC, a prominent semiconductor manufacturer, became a focal point of the downturn. Despite the overall market's upward trend, institutional investors, particularly investment trusts, continued their sell-off of UMC shares, offloading another 26,000 shares. Proprietary traders also maintained their selling pressure.

“

UMC's stock price fell from 167 yuan to test 160 yuan, with an upper and lower fluctuation of 4.26%. Fortunately, with the rescue of foreign and retail investors, it finally closed at the same level of 164 yuan.

The stock, which had reached an intraday high of 167 New Taiwan dollars, dipped back to 160 dollars, a 4.26% swing. Fortunately, intervention from foreign investors and retail traders helped UMC recover to close at its opening price of 164 dollars. The trading volume also decreased significantly to 222,600 shares, indicating a lack of strong conviction from either buyers or sellers by the end of the session.

Investment trusts were net sellers of 13.75 billion New Taiwan dollars in the broader market, but their focus on UMC was particularly sharp. Other major stocks sold by investment trusts included Yuanta Financial Holding, Compal Electronics, Acer, Asia Cement, and Pou Chen Corporation. The day's trading left UMC's 860,000 shareholders with little to celebrate, as their hopes for a substantial stock price increase were dashed.

“

Investment trusts continued to sell heavily into UMC, selling another 26,000 shares.