The red-hot TAIEX is expected to hit 9,000 points later this week, driven by continued foreign buying and a series of positive developments in the political arena, analysts said yesterday.
"We are very optimistic about the market outlook," Jason Huang (黃崇恩), assistant manager at UOB Investment Advisor (Taiwan) Ltd, said in a telephone interview yesterday.
The benchmark index is expected to soar to as high as 9,000 in the latter part of this week, when the second quarter ends, after a very short-term fluctuation above 8,700, Huang said.
The Singaporean investment advisory agency anticipated the bull market running through to the Mid-Autumn Festival in September.
The TAIEX is likely to hit the long-awaited 10,000 points more by the end of this year or before the presidential election next March, he said.
The nation's stock market experienced a feverish rally last week, with the TAIEX hitting 8,851.99 on Thursday -- the highest in seven years.
Daily turnover was robust and exceed NT$200 billion (US$6 billion) on Wednesday, the highest amount in over two years.
International investors bought a record daily net of NT$42.93 billion last Wednesday and purchased a total of NT$87.08 billion worth of shares in the four trading days last week.
"We expect the foreign buying spree to continue after seeing robust capital, as overseas investors and Taiwanese funds parked abroad have returned their focus on the laggard Taiwanese market," Huang said.
The research team at Mega International Investment Service (
The Mega International investment team said investors should be cautious over buying more shares as they could face increased risks against an increasingly limited upside.
A series of investment conferences organized by foreign brokerage houses in Taipei last week and this week may suggest a growing foreign interest in the local equity market.
UBS Securities (Taiwan) is holding a two-day investment forum starting today, which features 92 Taiwanese large-cap company participants, including Taiwan Semiconductor Manufacturing Co (台積電), the world's largest made-to-order chipmaker, Hon Hai Precision Industrial Co (鴻海精密), the world's biggest contracted electronics manufacturer and Cathay Financial Holding Co (國泰金控), the nation's leading financial group.
The event hopes to attract over 200 investors.
This followed a similar event held last week by the Edinburgh, Scotland-based Martin Currie Investment Management Ltd, which plans to raise US$300 million in funds to invest in the nation's medium and small-cap stocks in pursuit of a 150 percent return within the next three years.
The announcement by Ma Ying-jeou (馬英九), the Chinese Nationalist Party's (KMT) candidate for the presidential election, of the experienced economic policy planner Vincent Siew (蕭萬長) as his running mate has been deemed by foreign investors as positive news for the market, as this could signal that further cross-strait relaxation could be expected, Huang said. Siew was premier under president Lee Teng-hui (李登輝).
He also served as minister of economic affairs and chief of the Mainland Affairs Council when the KMT was in power.
"Known for pushing closer economic and trade ties with China, Siew will complement Ma's `mutual non-denial' cross-strait blueprint," Cecilia Liu, of SinoPac Securities Co (永豐金證券), wrote in an investment note dated Saturday.
Huang said that another positive development was the government rolling out market stimulation measures to support the local bourse.
Units of Intel Corp and Samsung Electronics Co are targeting to resume full operations of their Ho Chi Minh City plants by the end of next month, a move that could provide relief to global supply chains. Saigon Hi-Tech Park is helping its tenants, many of which are running at about 70 percent capacity, to operate fully next month, park deputy manager Le Bich Loan said in a phone interview. She did not elaborate on the steps the park is taking, particularly efforts at bringing back workers who fled to home provinces. The Ho Chi Minh City unit of Nidec Sankyo Corp,
CHIP CRUNCH: Apple’s woes show that even the king of the technology world is not immune from global shortages made worse by the COVID-19 pandemic Apple Inc is likely to slash its projected iPhone 13 production targets for this year by as many as 10 million units as prolonged chip shortages hit its flagship product, people with knowledge of the matter said. The company had expected to produce 90 million new iPhone models in the final three months of this year, but it is now telling manufacturing partners that the total would be lower because Broadcom Inc and Texas Instruments Inc are struggling to deliver enough components, the people said. Apple gets display parts from Texas Instruments, while Broadcom is its longtime supplier of wireless components. One Texas
EVA Airways Corp (長榮航空) and China Airlines Ltd (中華航空), the nation’s two major airlines, reported accelerated revenue growth in the third quarter compared with the previous two quarters, thanks to robust air cargo business. EVA Airways yesterday said sales for last quarter rose 40 percent year-on-year to NT$25.81 billion (US$917 million), compared with an increase of 25 percent in the second quarter and a fall of 35 percent in the first quarter. China Airlines said sales grew 39 percent to NT$34.6 billion in the third quarter, after gaining 10 percent in the second quarter and falling 14 percent in the first quarter. EVA
Hon Hai Precision Industry Co (鴻海精密) is embarking on a recruitment drive to hire 200,000 workers in Shenzhen, China, as it ramps up production of the new iPhone 13 series, Chinese business news outlet Eastmoney.com reported. Hon Hai is seeking to recruit those heading back to the city after China’s seven-day National Day holiday, which began on Oct. 1, to help churn out the estimated 100,000 iPhone 13s produced on the site each day, the report said. Following last month’s global release of the iPhone 13, Hon Hai entered its traditional peak season, and workers at its Chinese production sites are said