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Taiex could challenge 9,500 points in 2015: advisory firm

Taiex could challenge 9,500 points in 2015: advisory firm

Taipei, Jan. 10 (CNA) The Taiwan stock exchange's benchmark index, the Taiex, could challenge the 9,500-point mark in 2015 but will not have as much upside potential as in 2014, a securities investment advisory firm cautioned Saturday. The weighted index closed about 8 percent higher in 2014 at 9,307.26 on the back of large foreign fund inflows, as major central banks in the world, including the U.S. Federal Reserve and the Bank of Japan, pumped funds into the market. The closing high in 2014 came on July 15, when the weighted index ended at 9,569.17. Chen Po-chen, a manager of the Manulife Taiwan High Dividend Fund, predicted that the local bourse would have a hard time matching last year's gains because corporate earnings in 2015 are unlikely to grow as significantly as in 2014. According to Chen, listed companies on the main board and the over-the-counter market are expected to report a combined 32-35 percent year-on-year growth in earnings for 2014. That will leave a high base of comparison for 2015, Chen said, which is why he expects the combined earnings of all listed companies in Taiwan to grow only 5-7 percent in 2015 and limit the upside on the main board.
Chen said the weighted index could hit a high of 9,500 points during the year but could also pull back to test 8,300 points largely because earnings will underwhelm investors. Also, after Apple Inc. unveiled two new iPhone models with larger displays -- the 4.7-inch iPhone 6 and the 5.5-inch iPhone 6 Plus -- in September, Chen said he did not expect the next generation iPhone due out this year to continue to impress the market. Chen said that because many Taiwanese high-tech firms are highly dependent on orders from Apple, weaker iPhone sales would have an adverse impact on Taiwan's electronics sector. Chen's forecast was not as rosy as a previous prediction made by SinoPac Financial Holdings Co., which said the TAIEX is expected to hit 9,800 points this year on continued strong capital expenditure in the electronics sector to meet growing demand for mobile devices. SinoPac Financial said the local economy is expected to grow this year to lend support to share prices here. On Friday, the weighted index on the main board closed down 0.24 percent at the day's low of 9,215.58. (By Esme Jiang and Frances Huang)


Updated : 2021-09-19 19:11 GMT+08:00