The equity market was expected to experience sustained rising impetus this week, backed by anticipations of strong sales by high-tech exporters and continuous robust capital momentum after weeks of buying sprees.
Yet, the limited upside after a long rally and possible downturn of stocks that has reported less ideal profits for the first half could become investment uncertainties, analysts said.
"The TAIEX could continue to strengthen to the 9,700 mark, while seeing support at 9,200 [this week]," an equity research team of IBT Securities Co (台灣工銀證券) said in a report released over the weekend.
The high-tech industry's traditional high season began earlier than before, which would greatly benefit local electronics makers, the team said, citing the US National Retail Federation's forecast of a record 13 percent increase in demand for electronics goods in the US' back-to-school sales in September.
Foreign investors' continued buying, favorable government policies, plus estimated payout of a combined NT$800 billion (US$24.4 billion) in dividends by listed firms, would collectively contribute to a bull market in the local stock exchange, the report said.
The TAIEX gained 112.59 points, or 1.17 percent, to close at 9,585.90 on Friday on turnover of NT$221.92 billion, marking a new seven-year high in the wake of 10 straight weeks of advance.
However, a plunge in the US stocks on Friday, with the Dow Jones Industrial Average losing more than 149 points, or 0.4 percent to close at 13,851.08, could cast uncertainty on Taiwan's markets when they open today.
Investors may need to be more cautious as the TAIEX could see shrinking short-term upside or consolidation following a long surge, IBT Securities said, adding that buyers should avoid companies that did not report bright sales during the first six months of this year.
Henry King (金文衡), head of Taiwan equity research with Goldman Sachs, said last week that the industry fundamental and liquidity momentum remain healthy in the current quarter, but the risk of a correction was rising following the 15-percent jump in the TAIEX over the past month.
He appeared cautious about the market outlook for fourth quarter, citing several factors which could dilute profitability per share, including vendors' overdue optimism without considering consumers' budget constraint, buyers' holding back before rollout of new products, possible inventory pileup and the implementation of employee bonuses next year to dilute profitability per share.
Despite the fact that some analysts are positive that the TAIEX could hit 10,000 points during the current quarter, King said picking the right stocks was more important than the surge scale of the index.
Goldman Sachs recommended nine high-tech stocks, including Compal Electronics Inc (
It also liked Chinatrust Financial Holding Co (中信金控) and Chang Hwa Bank (彰化銀行) on a merger and acquisition story, and insurance stocks on strong core business growth and contribution of investment return to their bottom lines.
In the non-tech sphere, Macquarie Securities said last week that they prefer President Chain Store Corp (
Cairo’s new monorail slices across the city skyline, running above the familiar chaos of blaring horns and aging buses’ exhaust fumes that mark rush hour below. The US$4.5 billion monorail, opened this month, is among Egypt’s most prominent new transport projects, part of a debt-funded infrastructure drive criticized for sapping state finances while bringing limited benefits to most of the country’s 109 million people. “It feels like you’re in a different country,” said Ramy Sayed, a restaurant manager, aboard a driverless Innovia 300 train. “No noise, no traffic, we’re not used to this.” The eastern line runs 56km from the bustling middle-class
Taiwanese firms have increased investment in the Philippines in recent years as Manila’s ties with Washington deepen and global supply chains continue to shift away from China, an expert at the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. The Philippines had not been among Taiwanese investors’ top choices in Southeast Asia, CIER Taiwan ASEAN Studies Center director Kristy Hsu (徐遵慈) said at a seminar in Taipei. However, Taiwan’s investment in the country has grown significantly since the COVID-19 pandemic, reaching US $257 million last year, a high in recent years, she said. Although Taiwan’s total investment in the Philippines still lags
Starlux Airlines Co (星宇航空) today unveiled a long-haul network expansion plan at a shareholders’ meeting in Taipei, including direct flights to Barcelona, Spain, and Zurich, Switzerland, as well as a service connecting Taipei, Sydney and New Zealand. Starlux is to become the first Taiwanese carrier to offer non-stop services to the two European cities, while the inaugural oceanic route is expected to expand transit opportunities within the Australia-New Zealand market, Starlux said. Flight services to Chicago, Dallas, Washington and New York are under evaluation, the airline added. Prior to the shareholders’ meeting, the airline earlier this year announced that it would be
Intel Corp regards Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) as a longstanding partner, as the US chipmaker would continue outsourcing production of advanced chips to TSMC, Intel chief executive officer Lip-Bu Tan (陳立武) said yesterday. “I don’t look at people as competitors. I look at the collaboration... Nvidia is also, you know, a good friend,” Tan told a news conference following his keynote speech at the Computex trade show in Taipei. “It’s a very trusted partnership for us... We are a big, top customer for them, and we’re going to continue doing that,” he said, referring to TSMC, the world’s largest foundry
RSS