The Hill Report · Taiwan edition · no. 2
Shelter pays as foreign selling spreads to Taiwan's AI suppliers
Foreign investors sold a net NT$606.6bn ($18.6bn) of Taiwanese shares as the rout widened from chipmakers to AI hardware suppliers, while trusts bought and purchases of telecoms, shipping and financial groups beat a falling Taiex.
In brief
- Foreign investors recorded NT$606.6bn ($18.6bn) of net selling against NT$821.9bn ($25.4bn) the fortnight before, yet the Taiex fell 9.7 per cent as margin loans shrank.
- Selling spread from chipmakers to AI hardware suppliers: Delta Electronics fell 28 per cent and Unimicron Technology 26 per cent amid worries over US data-centre spending.
- Purchases went to shelter and it paid: Chunghwa Telecom, EVA Airways, Evergreen Marine and CTBC Financial beat the Taiex, while bought AI names such as King Slide Works fell.
- All four expectations of 26 October held, but they were one bet on a continuing sell-off, and the trusts' edge where they disagreed with foreign investors did not repeat.
- A Taiwan dollar weaker by 4 per cent over a month and a US real 10-year yield of 1.1 per cent still favour foreign selling.
Then and now
Each institutional group’s net buying or selling this fortnight, against the fortnight before