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Taiwan's stock market expected to surge this year

Shares related to Apple's iPad and China are likely to remain strong this year: Tsao

Taiwan's stock market expected to surge this year

After Taiwan's benchmark stock index closed above 8,000 points last week, analysts predicted that the momentum would likely continue, especially with less than one month to go before the opening of the 2010 World Expo in Shanghai. They expected a new high to be set in the second half of this year.
The Taiex gained 12.84 points to close at 8,025.93 Friday, after breaking the 8,000-point mark the previous day.
The following are excerpts from local media coverage of the issue:
Economic Daily News:
Tsao Tien-lun, vice president of Taiwan International Investment Management, suggested that investors hold China-themed shares, because they are likely to remain strong for the whole year.
Stocks related to Apple's iPad, cloud computing and smart grid products are also expected to have strong showings, Tsao added.
He predicted that the local bourse's recent rally will continue, with the benchmark Taiex soon breaking the previous year's high of 8,395.
He was optimistic in part because foreign investors were net buyers of NT$113.1 billion in shares in March. Based on historical data, whenever foreign investors buy a net NT$100 billion or more in shares in a month, share prices the following month rise between 1-3 percent, Tsao said.
But he also expressed concerns that the government's National Stabilization Fund will withdraw from the stock market.
Meanwhile, some analysts attributed the recent rebound in the market to strong corporate earnings in the technology sector.
The first quarter is normally the industry's low season, but many companies posted better-than-expected sales during the period, with the revenues of seven LED manufacturers setting single-month highs in March.
LED-backlit TV shipments are expected to exceed 30 million units this year, more than 10 times the number shipped last year.
Semiconductor and LED companies are also expected to see a significant boom in their businesses due to high demand in China.
LED manufacturer Elite Advance Laser Corporation (eLaser) is expected to post March sales of more than NT$160 million, 200 percent higher than in the same period last year. (April 4, 2010).
Commercial Times:
As there has been an increasing demand for LED, solar energy, aviation products, electric vehicles and foodstuffs ahead of the Shanghai Expo slated to open May 1, shares related to these sectors have become popular recently and are set to surge in the coming month, analysts said.
For example, the share prices of Formosa Epitaxy Inc., a major indium gallium nitride (InGaN) manufacturer, leading retailer Ruentex Industries, and electronics distributors Synnex Technology and Tsann Kuen have risen significantly because of strong sales related to the Shanghai Expo.
The event, with will open in May, is expected to attract 70 million visitors, 10 times the number that visited Beijing for the Summer Olympics in 2008.
Although the outlook for the local stock market this year is bright, the Taiex will likely move in starts and stops in the short term before rebounding to challenge the 10,000-point mark in the second half of this year, said Charles Hsiao, president of Fubon Securities Investment Services Co.


Updated : 2021-08-06 05:39 GMT+08:00