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Foreign Investors Offload NT$20 Billion in Taiwan Stocks but Pivot to Traditional Sectors
Non-Energy Minerals · Steel · economic_daily · 2026-10-14
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Despite a NT$20 billion sell-off by foreign investors in the Taiwan market, capital flowed heavily into traditional sectors, with China Steel Corporation emerging as the top buy.
What Happened
Foreign Investor Activity: On the 14th, the Taiwan stock market experienced significant volatility, closing up 284.52 points at 48,625.83 with a turnover of NT$928.6 billion. While foreign investors net sold NT$20.04 billion, their buying activity shifted heavily toward traditional industries, with Compal Electronics being the only technology stock among the top ten buys.
Traditional Sector Strength: Traditional sectors including cement, textiles, chemicals, steel, and shipping outperformed the broader market. Formosa Plastics saw a surge of over 9%, hitting a record high, while other chemical stocks like Formosa Chemicals & Fibre and China Petrochemical Development also attracted significant foreign capital.
China Steel Leads the Way: China Steel Corporation (CSC) topped the foreign buying list with 77,000 shares purchased, marking four consecutive days of net buying. Analysts attribute this interest to the traditional peak season for steel and the company's ability to raise product prices while raw material costs, such as iron ore and coking coal, have declined.
Margin Expansion Outlook: With global steel prices trending upward and production costs falling, market experts expect CSC to report its strongest quarterly earnings of the year in Q4. The combination of increased shipment volumes in September and improved price spreads positions the company for a robust financial performance in the coming months.