Investors should buy stocks with high yields or blue chip companies before the local stock markets close for the Lunar New Year holidays, paving the way for an upswing, fund managers said yesterday.
The anticipation of an upswing is mostly backed by Taiwan's attractive evaluation among Asian markets by overseas fund managers, while local shares are trading at a record low price-to-earnings ratio of around 10 as opposed to rival Singapore's 14, analysts said.
On top of that, local corporations enjoy higher return on equity and the nation's central bank is likely to maintain its loose monetary policy, Eric Lai (
The forecast for a better TAIEX performance makes sense for investors wanting to increase their local share holdings, according to Lin. The local stock market is set to close on Thursday and trading will resume on Feb. 14.
"Companies with a respectable yield should be the first pick," Lai said. Next to that, blue chips in financial, electronics and traditional sectors will also be good targets, he said.
Telecommunications operators are seen as an indicator as they are often generous with cash dividends. State-run Chunghwa Telecom Co (
The annual cash dividend represents roughly a 7 percent yield, based on last week's closing price of NT$65.5 on the Taiwan Stock Exchange Corp, which is much higher than the yield of less than 2 percent from bank deposits.
Investors seeking higher returns, however, may shift their focus to electronics shares as there were more indications of a turnaround, said Bill Lan (
"It's safe to buy shares with good yields. But, not all of those shares will outperform the benchmark TAIEX this year," Lan said.
The domestic unit of the Chinese-owned, Dutch-headquartered chipmaker Nexperia BV will soon be able to produce semiconductors locally within China, according to two company sources. Nexperia is at the center of a global tug-of-war over critical semiconductor technology, with a Dutch court in February ordering a probe into alleged mismanagement at the company. The geopolitical tussle has disrupted supply chains, with some carmakers reportedly forced to cut production due to chip shortages. Local production would allow Nexperia’s domestic arm, Nexperia Semiconductors (China) Ltd (安世半導體中國), to bypass restrictions in place since October on the supply of silicon wafers — etched with tiny components to
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
Taiwan is open to joining a global liquefied natural gas (LNG) program if one is created, but on the condition that countries provide delivery even in a scenario where there is a conflict with China, an energy department official said yesterday. While Taiwan’s priority is to have enough LNG at home, the nation is open to exploring potential strategic reserves in other countries such as Japan or South Korea, Energy Administration Deputy Director-General Chen Chung-hsien (陳崇憲) said. While the LNG market does not have a global reserve for emergencies like that of oil, the concept has been raised a few times —
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday received government approval to deploy its advanced 3-nanometer (3nm) process at its second fab currently under construction in Japan, the Ministry of Economic Affairs said in a news release. The ministry green-lit the plan for the facility in Kumamoto, which is scheduled to start installing equipment and come online in 2028 with a monthly production capacity of 15,000 12-inch wafers, the ministry said. The Department of Investment Review in June 2024 authorized a US$5.26 billion investment for the facility, slated to manufacture 6- to 12nm chips, significantly less advanced than 3nm process. At a meeting with
RSS