UMC Shares Crater 36%, Triggered by ETF Removal and Institutional Selling

United Microelectronics Corp. (UMC) shares fell to an intraday low of NT$118 on July 27. This price represents a 36% decline from the June 24 high of NT$185.5. The sell-off impacts approximately 960,000 shareholders. UMC scheduled its second-quarter earnings call for July 29.

Forced selling from investment trusts drove the downward movement. Taiwan's three major institutional investors offloaded approximately 250,000 shares over the past four weeks. The Fubon Taiwan Core Semiconductor Total Return Index ETF (00900) removed UMC from its index. This removal forced passive funds to dump their holdings. Investment trusts sold an additional 10,084 shares on July 27.