UBS Securities said yesterday it has cut its target for the TAIEX to 7,800 points this year from the 8,200 points it previously estimated to reflect uncertainty over the global economy.
The local bourse is expected to encounter volatility amid concerns over the debt crisis in the eurozone before a mild rebound at the year’s end, according to the brokerage.
It was another downgrade of the TAIEX target after UBS Securities lowered the forecast from 9,000 points to 8,200 points last month.
The TAIEX closed up 191.72 points, or 2.6 percent, at 7,577.40 yesterday, on turnover of NT$130.24 billion (US$4.41 billion).
Share prices gained ground yesterday for the second consecutive session on strong institutional buying, after five central banks in Europe, the US and Japan announced plans to bolster financially troubled European banks, dealers said.
Led by financial heavyweights, buying quickly spread across the board as investor sentiment improved on hopes that the coordinated effort by the five central banks will provide relief to the debt-ridden countries in Europe and contain the financial crisis in the region, they said.
William Dong (董成康), head of research at UBS Securities Taiwan, said in a report that the recent depreciation of the New Taiwan dollar against the US dollar has helped local high-tech companies reduce foreign-exchange loss risks and enhance their bottom lines.
However, a falling NT dollar was the result of outflows of foreign funds, which has created a market with falling liquidity and paved the way for lower share prices, Dong said.
The NT dollar has fallen 1.94 percent against the greenback since the beginning of this month.
Dong said Taiwanese high-tech firms have been better prepared for the current global economic slowdown than they had been in 2008 after adopting effective measures to manage the supply chain and control inventory.
However, if demand from end-users continues to slow, bellwether electronics stocks are unlikely to post significant gains and boost the broader market, he said.
The high-tech sector is the backbone of Taiwan’s exports.
The brokerage recommends a buy on Taiwan Semiconductor Manufacturing Co (台積電), smartphone maker HTC Corp (宏達電), touch panel firm TPK Holding Co (宸鴻), Chunghwa Telecom Co (中華電信), 7-Eleven chain operator President Chain Store Corp (統一超商), Cheng Shin Rubber Industry Co (正新橡膠), food maker Uni-President Enterprises Corp (統一企業) and Chinatrust Financial Holding Co (中信金控).
UBS Securities has placed a sell recommendation on contract notebook computer maker Compal Electronics Inc (仁寶電腦), PC vendor Acer Inc (宏碁), Yang Ming Marine Transport Corp (陽明海運), China Airlines Ltd (中華航空) and SinoPac Holdings Co (永豐金控).
Among the rows of vibrators, rubber torsos and leather harnesses at a Chinese sex toys exhibition in Shanghai this weekend, the beginnings of an artificial intelligence (AI)-driven shift in the industry quietly pulsed. China manufactures about 70 percent of the world’s sex toys, most of it the “hardware” on display at the fair — whether that be technicolor tentacled dildos or hyper-realistic personalized silicone dolls. Yet smart toys have been rising in popularity for some time. Many major European and US brands already offer tech-enhanced products that can enable long-distance love, monitor well-being and even bring people one step closer to
Malaysia’s leader yesterday announced plans to build a massive semiconductor design park, aiming to boost the Southeast Asian nation’s role in the global chip industry. A prominent player in the semiconductor industry for decades, Malaysia accounts for an estimated 13 percent of global back-end manufacturing, according to German tech giant Bosch. Now it wants to go beyond production and emerge as a chip design powerhouse too, Malaysian Prime Minister Anwar Ibrahim said. “I am pleased to announce the largest IC (integrated circuit) Design Park in Southeast Asia, that will house world-class anchor tenants and collaborate with global companies such as Arm [Holdings PLC],”
Sales in the retail, and food and beverage sectors last month continued to rise, increasing 0.7 percent and 13.6 percent respectively from a year earlier, setting record highs for the month of March, the Ministry of Economic Affairs said yesterday. Sales in the wholesale sector also grew last month by 4.6 annually, mainly due to the business opportunities for emerging applications related to artificial intelligence (AI) and high-performance computing technologies, the ministry said in a report. The ministry forecast that retail, and food and beverage sales this month would retain their growth momentum as the former would benefit from Tomb Sweeping Day
Thousands of parents in Singapore are furious after a Cordlife Group Ltd (康盛人生集團), a major operator of cord blood banks in Asia, irreparably damaged their children’s samples through improper handling, with some now pursuing legal action. The ongoing case, one of the worst to hit the largely untested industry, has renewed concerns over companies marketing themselves to anxious parents with mostly unproven assurances. This has implications across the region, given Cordlife’s operations in Hong Kong, Macau, Indonesia, the Philippines and India. The parents paid for years to have their infants’ cord blood stored, with the understanding that the stem cells they contained