Foreign investors' net sales in Taiwan's stock market reach highest level since June 19

Foreign investors' net sales in Taiwan's stock market reach highest level since June 19

Foreign investors' net sales in Taiwan's stock market have reached their highest level since June 19, according to data from the Taiwan Stock Exchange Corporation [3]. This significant increase is a reflection of the growing interest and confidence in the Taiwanese market, particularly among international investors.

The latest figures indicate that foreign investors' net sales in Taiwan's stock market have surged to their highest point since the benchmark date. This trend is likely driven by several factors, including the robust performance of technology stocks and the overall positive outlook for the Asian markets.

The global forecast for the Asian markets remains upbeat, with the U.S. and European Union ratifying a trade agreement over the weekend [1]. This positive lead is expected to continue, with the Taiwan Stock Exchange (TSE) likely to bounce higher again on Monday.

The TSE finished barely lower on Friday, with the index easing 9.32 points or 0.04 percent to close at 23,364.38. The mixed performances from various sectors, including technology, financial, and plastics companies, contributed to the slight decline. Among the active stocks, Cathay Financial and Mega Financial slipped, while Hon Hai Precision and Nan Ya Plastics showed notable gains [1].

The strength on Wall Street, with the NASDAQ and S&P 500 reaching fresh record closing highs, has also been a positive influence. The Dow, NASDAQ, and S&P 500 all closed higher on Friday, with the Dow jumping 208.02 points or 0.47 percent to finish at 44,901.92, the NASDAQ adding 50.32 points or 0.24 percent to close at 21,108.32, and the S&P 500 gaining 25.29 points or 0.40 percent to end at 6,388.64 [1].

The optimism surrounding trade deals and the potential resolution of tariff issues is also contributing to the positive sentiment. With only a few days left until President Donald Trump's August 1 deadline, several trading partners are trying to reach an agreement with the U.S. to avoid high tariff imposition on their exports to the U.S. from August 1; the U.S. and the EU have since reached an agreement over the weekend [1].

Moreover, the increasing demand for semiconductors and other advanced technologies has also played a role in the rising net sales. Nvidia has placed orders for 300,000 H20 chips with Taiwan Semiconductor Manufacturing Company (TSMC), driven by robust demand from China [2]. This order highlights the strong demand for advanced semiconductor technology, which is a significant driver for the Taiwanese market.

In conclusion, the combination of positive market sentiment, robust technology sector performance, and increasing foreign investor interest has contributed to the highest level of net sales for foreign investors in Taiwan's stock market since June 19. As the market continues to evolve, it is essential to monitor these trends to understand the broader implications for investors and the Taiwanese economy.

References:
[1] https://www.rttnews.com/3557771/taiwan-stock-market-my-erase-friday-s-losses.aspx?type=glcom
[2] https://www.marketscreener.com/news/nvidia-places-h20-chip-orders-with-tsmc-sources-say-ce7c5fd9d88df22c
[3] https://www.twse.com.tw/en/trading/foreign/bfi82u.html