Allianz Global Investors has trimmed positions in local shares on expectations of extended corrections caused by heightened global geopolitical risks and profit-taking, Hong Kong-based analyst Pan Yuming (潘宇明) said in Taipei yesterday.
The investment division of Allianz SE, the German multinational financial service provider, ranks among the top five global active investment managers.
“There is very limited room for Taiwanese shares to rise in the short term” after staging a 6.41 percent pickup this year, Pan said.
The TAIEX closed down 0.11 percent to 9,163.12 yesterday on a light volume of NT$87.96 billion (US$2.92 billion), Taiwan Stock Exchange data showed, as the US airstrikes against Iraq have unnerved investors, while conflicts over Ukraine pose downside risks to Europe’s recovery, Pan said.
The market has also priced in expected earnings gains for Taiwanese firms in the supply chain of global technology giants that are slated to launch new-generation devices later this quarter, he said.
“The corrections in local shares are likely to last for a while, since many have seen noticeable rallies for the past few months,” Pan said.
The fund manager is positive about India, where the company did not own stakes in the past, but would allocate assets to benefit from reform measures introduced by the new government, he said.
Allianz is also interested in the growth story of South Korea and a stabilizing Thailand, Pan said.
Indonesia also poses growth potential, but Indonesian shares are expensive and the bourse would be prone to fund outflows, given its heavy foreign exposure, once the US Federal Reserve hikes interest rates, Pan said.
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