The TAIEX is likely to surpass its record high in the first quarter of next year because of an improving economy and strong market liquidity, Fubon Securities Investment Services Co (富邦投顧) chairman Charles Hsiao (蕭乾祥) said yesterday.
At an investment forum in Taipei, Hsiao said that Taiwan has relatively sound economic fundamentals compared with neighboring countries, and its stock market should continue to flourish.
He pointed to Taiwan’s expected 2.64 percent GDP growth for this year, which would beat growth of 1.7 percent for South Korea, 0.5 percent for Singapore and 0.9 percent for Japan as forecast by IHS Markit.
The Directorate-General of Budget, Accounting and Statistics last week said that the economy would grow 2.72 percent next year.
Those fundamentals should help the TAIEX early next year surpass the historical intraday high of 12,682, set on Feb. 12, 1990, Hsiao said.
Since the beginning of this year, the TAIEX has gained 1,775.42 points, or 18.25 percent, largely helped by large foreign fund inflows.
The market is expected to continue to benefit from dividend yields in Taiwan ranging from 3 to 4 percent that have appealed to foreign institutional investors, Hsiao said.
The electronics sector would also drive gains in the local market as large tech companies continue to invest in Taiwan, he said.
At a time when the global tech industry is gearing up to pursue 5G technology, Taiwan’s semiconductor industry and related component makers are expected to benefit from the trend and see their share prices grow, he said.
Just a few years ago, the millennial generation — generally defined as those born from the early 1980s through the mid-1990s — was synonymous with youthful rebellion. However, now, as the millennials ease into early middle age, they are finding their path out of their parents’ basement to be a lot harder than it was for earlier generations. The fundamental problem is that millennials are not building wealth. The wealth of the median US household headed by someone 35 or younger has actually shrunk in inflation-adjusted terms since the mid-2000s, even as the wealth of older Americans has continued to grow. An
Gogoro Inc (睿能創意) yesterday launched its first electric bicycle, the Gogoro Eeyo 1, in Taiwan, after unveiling the bike in New York in late May and in France on Tuesday. The company said it would also introduce the series in other European countries such as Germany and the Netherlands. The “Eeyo project” is the fourth of Gogoro’s eight projects that concentrate on smart transportation, which includes Gogoro’s electric scooter, battery swap system and electric scooter sharing service, company founder and chief executive officer Horace Luke (陸學森) told a media briefing in Taipei. “There are various types of city commuters. We will not
EXPERIMENTAL DRUG: While news about a COVID-19 vaccine is more eye-catching, developing a treatment would be more viable, the Senhwa boss said Senhwa Biosciences Inc (生華科) aims to raise NT$1.5 billion (US$50.57 million) by issuing 15 million new common shares in the third quarter of this year to fund the research of new drugs, including the experimental drug Silmitasertib for the treatment of COVID-19, the company said on Monday. That would be the firm’s largest fundraising effort after it raised more than NT$1.4 billion from an initial public offering on the Taipei Exchange (TPEX) in April 2017, chief financial officer Sarah Chang (張小萍) told the Taipei Times by telephone. The price of the new shares would depend on the firm’s average share price
NOT A PANACEA: Offering 5G services would not solve the problem of declining telecom incomes, chairman Sheih Chi-mau said, expecting a flat 5G telecom revenue Chunghwa Telecom Co (中華電信) yesterday became the nation’s first telecom to debut its 5G services, offering tiered tariffs that include a threshold of NT$599 and flat rates, as it aims to switch half of its subscribers to the 5G network within three years. Subscribers would have unlimited data transmission for monthly fees starting at NT$1,399 — the same flat rate as when the company launched its 4G service in 2014 — and they can subscribe to the highest-rate plan for NT$2,699 per month for faster data transmission speeds and larger bandwidth, the company said. Data transmission speeds would be within the range