Hon Hai suffers heaviest foreign selling for 2nd straight week

Taipei, April 16 (CNA) With its share price remaining weak, Hon Hai Precision Industry Co., the world's largest contact electronics maker, suffered its largest sell-off by foreign institutional investors last week for the second consecutive week, the Taiwan Stock Exchange (TWSE) said Monday.

The TWSE saw a net sell-off of 73.94 million Hon Hai shares, the highest net sell among all of the stocks listed on the local main board last week.

The sell-off followed a net sell of 52 million Hon Hai shares the previous week, also the heaviest sell-off among the main board's listed firms.

Last week, Hon Hai fell 0.23 percent, although the company reported its highest-ever first-quarter sales figures during the week, with market analysts attributing the revenue growth to solid demand for communication devices and computing devices.

Analysts said foreign institutional investors cut their holdings in Hon Hai in a bid to buy shares of subsidiary Foxconn Industrial Internet Co. Ltd. (FII), which is planning to launch a listing on the Shanghai Stock Exchange later this year.

On Monday, shares of Hon Hai staged a rebound, up 0.69 percent to close at NT$87.60 (US$2.98) on the main board, where the benchmark weighted index, or Taiex, ended down 0.10 percent at 10,954.55 points.

After Hon Hai, a net sell of flat panel maker Innolux Corp. by foreign institutional investors hit 55.12 million shares, and a net sell of flat panel supplier HannStar Display Corp. totaled 46.80 million shares, the TWSE said.

On the other hand, E. Sun Financial Holding Co. enjoyed the largest net buy of 39.52 million shares by foreign institutional investors, followed by a net buy of 26.30 million Taiwan Business Bank shares, and a net buy of 25.50 million Far Eastern Department Stores Ltd., the TWSE said.

Last week, foreign institutional investors sold a net NT$8.76 billion-worth of shares on the local main board after a net sell of NT$10.93 billion in the previous week, the TWSE said. Between Jan. 1 and April 13, foreign institutional investors recorded a net sell of NT$88.70 billion-worth of equities on the main board, while the Taiex rose 3.03 percent on the back of buying by local major market players.

As of April 13, foreign institutional investors held NT$13.52 trillion in market capitalization, accounting for 41.20 percent of the total, the TWSE said.

Source: Focus Taiwan News Channel