The local stock market is expected to stage a short-lived rally next week as some investors maintain interest in buying stocks in financial, or traditional sectors, which are seen as major beneficiaries of the new government's economic stimulus measures.
Long-term investors may still be willing to extend their purchase of local stocks during the post-election period, but they will be cautious as the local bourse will face mounting pressure from global peers, which are under the shadow of the possible effects of the US recession, analysts said.
Backed by a new buying spree, which may not be as strong as last week, "local stock is likely to rise one, or two trading sessions as the outcome of the presidential elections match the market expectation," an official at a local investment company said. He requested anonymity.
PHOTO: CHEN TSE-MING, TAIPEI TIMES
Asset-rich Tatung Co (
The benchmark TAIEX index may slightly expand last week's gain to between 8,600 and 8,700 points, but will be capped by uncertainty about the macroeconomic environment and possible weak corporate earnings results to be released next month, the local investment consultant said. The TAIEX closed 2.25 percent higher at 8,524.99 on Friday.
With limited impact from a slowing economy in the US, "We believe stocks in traditional sectors will still have [upside potential] in the next one or two months," said Sophia Cheng (程淑芬), managing director of equity research at Merrill Lynch's Taiwan branch, at a forum ahead of the presidential election last week.
Merrill Lynch is positive about the nation's traditional sector on the back of the government's renewed efforts to spur domestic demand and thereby the nation's economy by building stronger trade ties with China.
Newly elected president Ma Ying-jeou (馬英九) of the Chinese Nationalist Party (KMT) had told voters before the election that he would scrap the long-term ban on direct flights between Taiwan and China by the summer and would raise the quota for Chinese visitors to Taiwan as well as allow Chinese to invest in the local property market.
Goldman Sachs also said a KMT victory should lead to positive policy change and improved business confidence, a report dated March 7 said.
Following the KMT's win Goldman Sachs rerated Taiwanese shares to a price-to-earning ratio of 15, which translates to a index level of 10,000.
Expressing a similarly bullish view on local stock market in the long run, Merrill Lynch said the new government's policy change may offer a chance for an upgrade from global fund managers, which had under-weighed the local stock market over the past few years.
"We are trying to get a picture about what the Taiwanese stock market will look like at the end of 2009," Cheng said.
Foreign investors resumed large-scale purchase of local shares worth NT$24.25 billion on Friday, reversing their profit-taking sales over the past month, Taiwan Stock Exchange data showed.
Financial stocks including First Financial Holding Co (第一金控) and Chinatrust Financial Holding Co (中信金控) were the favorites among overseas fund managers on Friday.
In contrast to the consensus bullish view on financial sector, Sherry Lin (
"Asian stock markets will have a close link with the US market as used to be the case," Lin said, despite the belief that Asian markets would go their own way due to the rise of China.
Taiwan is to receive the first batch of Lockheed Martin F-16 Block 70 jets from the US late this month, a defense official said yesterday, after a year-long delay due to a logjam in US arms deliveries. Completing the NT$247.2 billion (US$7.69 billion) arms deal for 66 jets would make Taiwan the third nation in the world to receive factory-fresh advanced fighter jets of the same make and model, following Bahrain and Slovakia, the official said on condition of anonymity. F-16 Block 70/72 are newly manufactured F-16 jets built by Lockheed Martin to the standards of the F-16V upgrade package. Republic of China
Taiwan-Japan Travel Passes are available for use on public transit networks in the two countries, Taoyuan Metro Corp said yesterday, adding that discounts of up to 7 percent are available. Taoyuan Metro, the Taipei MRT and Japan’s Keisei Electric Railway teamed up to develop the pass. Taoyuan Metro operates the Taiwan Taoyuan International Airport MRT Line, while Keisei Electric Railway offers express services between Tokyo’s Narita Airport, and the Keisei Ueno and Nippori stations in the Japanese capital, as well as between Narita and Haneda airports. The basic package comprises one one-way ticket on the Taoyuan MRT Line and one Skyliner ticket on
Many Japanese couples are coming to Taiwan to obtain donated sperm or eggs for fertility treatment due to conservatism in their home country, Taiwan’s high standards and low costs, doctors said. One in every six couples in Japan is receiving infertility treatment, Japanese Ministry of Health, Labour and Welfare data show. About 70,000 children are born in Japan every year through in vitro fertilization (IVF), or about one in every 11 children born. Few people accept donated reproductive cells in Japan due to a lack of clear regulations, leaving treatment in a “gray zone,” Taichung Nuwa Fertility Center medical director Wang Huai-ling (王懷麟)
A pro-Russia hacker group has launched a distributed denial-of-service (DDoS) attack on the Taiwanese government in retaliation for President William Lai’s (賴清德) comments suggesting that China should have a territorial dispute with Russia, an information security company said today. The hacker group, NoName057, recently launched an HTTPs flood attack called “DDoSia” targeting Taiwanese government and financial units, Radware told the Liberty Times (sister paper of the Taipei Times). Local tax bureaus in New Taipei City, Keelung, Hsinchu and Taoyuan were mentioned by the hackers. Only the Hsinchu Local Tax Bureau site appeared to be down earlier in the day, but was back
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