Tue, Nov 25, 2014 - Page 13 News List

Brokerage expects TAIEX to hit 10,000 points next year

By Amy Su  /  Staff reporter

Capital Securities Corp (群益金鼎證券), one of the nation’s major brokerage houses, yesterday said that the TAIEX is likely to reach 10,000 points next year, with US interest rate movements likely influencing its movement.

The TAIEX rose 0.34 percent to close at 9,122.33 yesterday.

“The US Fed’s interest rate hikes are likely to be the major factor determining the TAIEX’s movement next year,” company chairman Alex Wang (王濬智) told a media briefing.

Investors’ expectations of a rise in US interest rates might be the main factor limiting the TAIEX in the first half of next year, as the US Federal Reserve is widely expected to end quantitative easing during that period, which would attract overseas fund managers’ interest to the US stock market, Wang said.

Wang said he expects the TAIEX and trading volume to rebound in the second half after the impact of US Fed policy eases off gradually.

The TAIEX is expected to perform in a wider range than this year, of between 7,800 and 10,000, the brokerage forecast. Wang said the index might hit 10,000 points in the first or fourth quarter next year.

Compared with other Asian markets, Taiwan’s market might see stronger capital inflows from foreign portfolio investors next year, Capital Securities president Chao Yung-fei (趙永飛) said.

“Taiwan’s economy is buoyed by strong external trade, with nearly zero foreign debt and mild expansion in consumer prices, which should put the nation’s financial stocks at a competitive advantage over its peers,” he said.

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