United Microelectronics (UMC) experienced a significant decline of 5.08% during extended hours trading, as the stock faced selling pressure following an analyst downgrade.
The price movement came after Daiwa downgraded UMC from Outperform to Neutral, although the firm simultaneously raised its price target on the stock from NT$50 to NT$59.50.
Analyst downgrades often trigger negative market sentiment as they suggest reduced confidence in a stock's future performance relative to market expectations, which appears to have contributed to the selling pressure on UMC shares during the night session.