TAIPEI (Taiwan News) — Foreign institutional investors (FII) sold NT$50.5 billion (US$1.55 billion) in Taiwanese stocks last week, but bucked the trend by buying into the financial sector.

E. Sun Financial Holding Co. led the pack of most heavily traded stocks by FIIs with a net purchase of 180,568 shares. CTBC Financial Holding Co. followed at 132,753 shares and Shin Kong Financial Holding Co. at 92,682 shares, per CNA.

Financial holding companies dominated the top buys, claiming the top three most-purchased stocks. Five of the top 10 stocks most heavily bought by FIIs belonged to the financial sector.

A foreign institutional investor (FII) is a non-domestic financial institution. It can include hedge funds, insurance companies, pension funds, investment banks, and mutual funds that invest in foreign securities, according to Investopedia.

FIIs are vital contributors of capital to developing a nation's economy. However, countries like India and Taiwan impose limits on their investments to safeguard domestic markets and financial stability.

FIIs operating outside of Taiwan are exempt from investment limits when investing in Taiwanese markets. In contrast, domestic FIIs are constrained by a maximum investment cap of US$50 million, the Financial Supervisory Commission said.

China Airlines saw the largest net sell by FIIs last week with 80,680 shares. It was followed by Far Eastern New Century Co. at 77,501 shares, and Taiwan Business Bank Co. at 77,193 shares.

As of Nov. 22, FIIs have net sold NT$639.43 billion worth of stocks in the concentrated market this year. Their total holdings in listed stocks amount to NT$32.848 trillion, representing 44.80% of the total market capitalization.