Taiwan Stocks Post Record Closing Gain as Foreign Investors Extend Sell-Off to 13 Days, Cut Innolux by Over 62,000 Lots

How large was the record closing gain?

The TAIEX (台股加權指數) rose 1,783.17 points to close at 44,232.87 on July 21, which CNA described as "the second largest intraday gain and the largest closing gain" on record, with turnover of NT$835.624 billion for the session. Cnyes framed the same session in its headline as the market's "largest gain in history," while noting a key catch: the rally did not draw foreign investors back to the buy side.

How many days has the foreign sell-off continued?

Per CNA, Foreign Institutional Investors remained net sellers for a 13th consecutive day, concentrating their sales in panel, plastics and select electronics names. Cnyes's headline put it more bluntly: "The largest gain in history didn't bring foreign investors back — they kept selling for a 13th straight day and heavily cut the 'panel twin tigers.'" Read together with the stock-level breakdown below, those "twin tigers" line up with Innolux and AU Optronics, the No. 1 and No. 3 names on the day's foreign sell list.

What was the combined buy/sell breakdown among the three institutional investors?

CNA reported that the three Institutional Investors (三大法人) posted a combined net buy of NT$16.407 billion on July 21. Proprietary traders added a net NT$3.507 billion, investment trusts added a net NT$17.232 billion, while Foreign Institutional Investors and mainland investors were net sellers of NT$4.332 billion.

The three line items add up exactly to the combined figure (3.507 + 17.232 - 4.332 = 16.407), confirming that investment trusts' buying more than offset the foreign outflow on this particular session.

Which stocks saw the heaviest foreign selling, and how much was Innolux trimmed?

CNA's ranking of the top five foreign net-sell names placed Innolux (群創) first with 62,999 lots sold — consistent with the same report's earlier reference to Innolux selling "over 62,000 lots." Nan Ya Plastics (南亞) ranked second at 23,552 lots. AU Optronics, Taishin Financial Holdings (台新新光金) and Powerchip Semiconductor rounded out the remaining three spots on the list, though CNA did not disclose their exact lot counts.

Which stocks did foreign investors buy even while selling overall?

Despite the net outflow, CNA's top-five foreign buy list shows foreign investors were adding to specific names. The actively managed ETF 主動統一台股增長 led with 56,033 lots bought, followed by another actively managed ETF, 主動統一升級50, at 43,716 lots. The KGI Taiwan TOP50 ETF (凱基台灣TOP50), Yuanta Financial Holdings (元大金) and Foxconn (鴻海) filled out the remaining three positions, again without disclosed lot counts in CNA's report.

What does Fubon's chairman say about market direction and what to watch?

CNA quoted Fubon Securities Investment Consulting chairman Chen Yi-kuang (陳奕光) characterizing the session as "price up but volume down" (價漲量縮), with the market's willingness to chase the rally still cautious, and advised a careful short-term stance. Chen flagged two specific indicators to watch, per CNA: whether the New Taiwan Dollar (新台幣) can hold near 32.4 against the US dollar, and whether foreign investors' net short position in futures rises back above 87,000 contracts. Chen said that if the TWD weakens and foreign short positions build again, a retest of the prior low of 41,967 points on the TAIEX cannot be ruled out.

How often has the TAIEX broken below its quarterly line this year, and where does it stand now?

CNA reported that the TAIEX has broken below its quarterly moving average only twice this year. The first breach came at the end of March, but the index recovered the line the very next day and went on to set new highs. The second breach occurred on July 17; the index reclaimed the quarterly line again on July 21, the same session as the record gain. CNA said this pattern is currently being read as a "short-term false break."

What this means

The headline number — a record closing gain of 1,783.17 points — sits alongside a foreign sell streak that CNA and Cnyes both put at 13 consecutive days, with Innolux and AU Optronics (the panel "twin tigers" per Cnyes) taking the heaviest cuts at 62,999 and an undisclosed lot count, respectively. What kept the index green despite that outflow, per CNA's own figures, was investment trusts' NT$17.232 billion in buying, which arithmetically offset the NT$4.332 billion foreign net sell and left the three institutional investors NT$16.407 billion net positive for the day. That tension is echoed in Chen Yi-kuang's own read of the session — "price up but volume down" — and in his two named indicators (the TWD holding near 32.4, and foreign futures net short positions versus the 87,000-contract threshold) as the conditions under which a retest of 41,967 would move from unlikely to live. The quarterly-line recovery on the same day CNA logged the record gain also matches the only other case this year — the March breach — where the index reclaimed the line within a day and continued higher, which is the basis CNA cited for calling the July 17 breach a "short-term false break" rather than a trend change.