Taiwan’s stock market rose sharply on the 21st, but Powerchip (stock code 6770) moved in the opposite direction.
Its net selling volume by foreign investors was the largest among the stocks with the highest net selling, and the share price also failed to hold its intraday gains.
It was a day when the movement of an individual stock could not easily be explained by the index trend alone.
3-Line Summary
1. Powerchip closed at 72.7 Taiwan dollars on the 21st.
2. Foreign investors were net sellers of 2만4016 shares.
3. An index rise and an individual stock’s movement are separate matters.
A Day That Fell from 74.4 to 72.7
Powerchip closed at 72.7 Taiwan dollars on the 21st, down 1.3 Taiwan dollars, or 1.76%, from the previous trading day. According to Mirror Media, the stock opened at 74.4 Taiwan dollars that day and rose as high as 74.5 Taiwan dollars during trading, but then declined to as low as 72.5 Taiwan dollars. This means that the upward trend immediately after the open did not continue through the close.
On the same day, Taiwan’s stock market index finished trading at 47,718.84 points (47718.84 points when written without comma separators), up 538.09 points (1.14%). Trading value was approximately 8,202 hundred million Taiwan dollars (8202 hundred million Taiwan dollars without comma separators). The index recorded gains for four consecutive trading days, but Powerchip’s daily price movement diverged from the market as a whole.
This contrast is the most notable aspect of the movement. Even though reports said that large electronic stocks and semiconductor-related stocks led market sentiment, separate trading supply and demand can have a more direct effect on a particular stock.
Powerchip Ranked No. 1 in Foreign Net Selling
Samrip Shinmun and Mirror Media reported that foreign investors were net sellers of 2만4,016 Powerchip shares on the day. This was the largest amount among the stocks with the highest foreign net selling. Compared with Samrip Shinmun’s report that foreign investors had been net buyers of a total of 15만2,977 Powerchip shares during the previous three trading days, the trading direction changed to selling on the 21st.
In the reported ranking of net selling, Huabang Electronics had 2만3,211 shares and China Steel had 1만9,712 shares, following Powerchip. It was a day when selling volume emerged across several stocks, rather than only a change in Powerchip’s price, but the fact that Powerchip had the largest volume drew attention alongside its decline.
However, what can be confirmed from the articles is the price and trading activity for that trading day. No information was presented establishing that foreign selling would determine future earnings or the direction of the stock price. This case shows that, along with whether the index rose, investors should separately examine individual stocks’ supply and demand, intraday highs and lows, and closing prices.
References
Tags #Powerchip #力積電 #PowerchipStock #6770 #TaiwanStocks #TaiwanStockMarket #ForeignNetSelling #ForeignSelling #SemiconductorStocks #StockPriceDecline #TaiwanDollar #StockSupplyAndDemand