Taiwan's stock market surged to a new high on Friday as foreign investors bought heavily, good news for the market overall but a shock for the many small shareholders of display maker AUO, which foreign funds sold hard.

• Chipmakers TSMC and UMC plus memory stocks led the rally, pushing the index up about 2% to a record close above 47,000.
• Foreign investors bought nearly NT$87 billion of Taiwan stocks, the fifth-largest single-day buying spree on record.
• Despite the buying frenzy, foreign funds dumped over 50,000 lots of AUO, a stock held by more than 610,000 retail shareholders.
• AUO briefly fell into the red before local buyers stepped in and lifted it back to a small gain by the close.
• Other big foreign sells included Taiwan Business Bank, Innolux, E.Sun Financial, and EVA Air.

Outlook: Foreign money is chasing Taiwan's chip and memory leaders, so the rally likely continues there while smaller stocks like AUO may face further pressure without local support.