Tue, Dec 03, 2019 - Page 12 News List

Stock Index Outlook: Fubon chairman says TAIEX should beat record high

Staff writer, with CNA

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.

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