Citigroup Global Markets said yesterday it maintained a previous forecast that the TAIEX would hit 10,000 points this year, partly on strong capital inflows.
Meanwhile, the presidential election scheduled for January next year is expected to prompt the government to support the local stock market in the run-up to the election to secure victory and stay in power as past governments had done, the brokerage said.
With closer business ties across the Taiwan Strait and relaxed cross-strait investment rules, Citigroup said, the Chinese Nationalist Party (KMT) government has encouraged Taiwanese investors operating in China to repatriate funds.
Citigroup said if both sides eliminated double taxation, the capital repatriation from China to Taiwan could total US$40 billion a year.
Authorities on both sides are aiming to sign an agreement in this area, but further negotiations are needed to cut a deal.
As for a likely rally because of the presidential election, Citigroup said the upswing is unlikely to come into full force until the fourth quarter this year, while bank stocks may lead gains as the sector is the most sensitive to government policies.
In addition to the financial sector, Citigroup is upbeat about share price gains posted by the local foundry sector, as well as Hon Hai Precision Industry Co (鴻海精密), the world’s largest contract electronics maker, on their relatively low valuations.
Citigroup has a target price of NT$148.00 on Hon Hai.
The brokerage has removed smartphone manufacturer HTC Corp (宏達電) from its top “buy” list as the stock appeared expensive after a recent strong showing.
The brokerage added specialty steelmaker Gloria Material Technology (榮剛材料) and aluminum and magnesium products provider Catcher Technology (可成科技) to its top “buy” list.
Among its top “sell” stocks are IC designer MediaTek Inc (聯發科), PC vendor Acer Inc (宏碁) and touch-panel maker Young Fast Optoelectronics Co (洋華).
Netherlands-based semiconductor equipment supplier ASML Holding NV yesterday said that it is planning to hire an additional 1,000 people in Taiwan this year in response to growing demand from clients. ASML had previously planned to recruit 600 people this year, but that the plan has been adjusted upward, ASML vice president and ASML Taiwan general manager Grace Wang (汪佳慧) told reporters. ASML has a workforce of more than 4,500 in Taiwan, accounting for about 10 percent of its global total, Wang said. This year’s recruitment campaign would focus on adding people in the customer support, manufacturing and supply chain domains to assist ASML
UNDER MICROSCOPE: Taiwan detained three people who allegedly conspired to buy servers in Taiwan and export them using fraudulent documentation, prosecutors said Nvidia Corp chief executive officer Jensen Huang (黃仁勳) on Saturday urged Super Micro Computer Inc to tighten up on compliance after Taiwan detained three people this week for allegedly making fraudulent declarations about artificial intelligence (AI) servers made by its US partner. The development marked the nation’s first crackdown on semiconductor smuggling, which grew after the US slapped restrictions on exports of high-end chips such as Nvidia AI accelerators to China. Nvidia is “rigorous” in explaining regulations to all of its partners, Huang told reporters after arriving in Taipei. “Ultimately Super Micro has to run their own company,” he said in response to
Nvidia Corp yesterday announced that CEO Jensen Huang (黃仁勳) would attend an employee meeting in Taipei tomorrow to celebrate the launch of the company’s Taiwan headquarters project. Huang would attend a gathering at the site of Nvidia’s planned headquarters in Beitou Shilin Technology Park (北投士林科技園區), the company said in a statement. After arriving in Taiwan on Saturday last week, Huang told reporters that he plans to meet with Quanta Computer Inc (廣達) chairman Barry Lam (林百里) and Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) chairman C.C. Wei (魏哲家), and would attend the groundbreaking ceremony for Nvidia’s Taiwan headquarters tomorrow. Nvidia has not yet applied
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
RSS