The TAIEX could face a downward correction this week, testing its previous low of 7,032 points recorded on May 25, following the US Dow Jones Industrial Average’s drop below the 10,000 point on Friday, analysts said yesterday.
“In line with global market fluctuations, the TAIEX is not completely out of the woods in spite of the local bourse’s earlier rebound [last week],” Jih Sun Securities Investment Trust Co (日盛投信) chief investment officer Chang Tao-lang (張島郎) said in a Central News Agency report.
Amid pessimistic market sentiment, the TAIEX will see further drag from the launch of this year’s World Cup, which will likely distract foreign investors, as well as uncertain progress on negotiations on a potential trade pact between Taiwan and China, the report cited HSBC Taiwan Phoenix Fund manager Huang Shih-chia (黃世洽) as saying.
Meanwhile, central bank data showed that the growth of M1B, a narrow measure of money supply that includes currency held by the public and deposits, declined for four consecutive month to 17.92 percent in April from a year earlier, indicating that the nation’s accumulated liquidity has eased, Huang said.
The local benchmark could drop to the 7,000 point level, but will find a strong bolster between 6,800 and 6,900 points, Polaris Securities Co (寶來證券) president Yao Ya-chen (姚亞承) told the United Evening News yesterday.
As the nation’s economic fundamentals remain healthy, the value of domestic shares will be of great interest if the benchmark index does plunge below 7,000 points, he added.
“Excellent mid-term buying opportunities will emerge,” the report quoted him as saying.
Yao recommended shares in financial, aviation, mid-cap IC design sectors and companies, the latter of which will likely benefit from Chinese demand as Beijing authorities will soon announce the country’s five-year plan to double its salary level.
Quanta Computer Inc (廣達) chairman Barry Lam (林百里) is expected to share his views about the artificial intelligence (AI) industry’s prospects during his speech at the company’s 37th anniversary ceremony, as AI servers have become a new growth engine for the equipment manufacturing service provider. Lam’s speech is much anticipated, as Quanta has risen as one of the world’s major AI server suppliers. The company reported a 30 percent year-on-year growth in consolidated revenue to NT$1.41 trillion (US$43.35 billion) last year, thanks to fast-growing demand for servers, especially those with AI capabilities. The company told investors in November last year that
Intel Corp has named Tasha Chuang (莊蓓瑜) to lead Intel Taiwan in a bid to reinforce relations between the company and its Taiwanese partners. The appointment of Chuang as general manager for Intel Taiwan takes effect on Thursday, the firm said in a statement yesterday. Chuang is to lead her team in Taiwan to pursue product development and sales growth in an effort to reinforce the company’s ties with its partners and clients, Intel said. Chuang was previously in charge of managing Intel’s ties with leading Taiwanese PC brand Asustek Computer Inc (華碩), which included helping Asustek strengthen its global businesses, the company
Taiwanese suppliers to Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) are expected to follow the contract chipmaker’s step to invest in the US, but their relocation may be seven to eight years away, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. When asked by opposition Chinese Nationalist Party (KMT) Legislator Niu Hsu-ting (牛煦庭) in the legislature about growing concerns that TSMC’s huge investments in the US will prompt its suppliers to follow suit, Kuo said based on the chipmaker’s current limited production volume, it is unlikely to lead its supply chain to go there for now. “Unless TSMC completes its planned six
Power supply and electronic components maker Delta Electronics Inc (台達電) yesterday said it plans to ship its new 1 megawatt charging systems for electric trucks and buses in the first half of next year at the earliest. The new charging piles, which deliver up to 1 megawatt of charging power, are designed for heavy-duty electric vehicles, and support a maximum current of 1,500 amperes and output of 1,250 volts, Delta said in a news release. “If everything goes smoothly, we could begin shipping those new charging systems as early as in the first half of next year,” a company official said. The new
RSS