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Taiwan's economy likely to slow down in 2015: UBS (update)

Taiwan's economy likely to slow down in 2015: UBS (update)

Taipei, June 23 (CNA) Swiss brokerage firm UBS Securities forecast Tuesday that Taiwan's gross domestic product (GDP) growth will slow from 3.7 percent in 2014 to 3.3 percent in 2015.
The slower growth will be due in part to the falling price of exports, tech product rollover cycles, and an economic slowdown in emerging markets, said William Dong, equities and research head of UBS Securities' Taipei branch.
"For Taiwan tech in particular, weak PC shipments, a slowdown in China's handset market, and inventory adjustments in the semiconductor sector have served as headwinds," Dong said at a media briefing at the UBS Taiwan Conference with investors.
"While we still expect the market to rebound in the second half of 2015 with dividend yields, seasonal rise in tech shipments, and the elections serving as catalysts, our conviction is now lower due to moderation of the fundamentals and weak local sentiment," said Dong.
He set his year-end target for the weighted index on the Taiwan Stock Exchange at 10,000 points and issued an "overweight" rating on the tech and telecom sectors.
On the political front, Dong said, UBS expects more market-friendly policies from the government in the second half of the year, ahead of the country's presidential and legislative elections next January.
However, domestic retail investors appear less than enthused, given the uncertainty of the election outcome, he added.
"In our view, this may create short-term market volatility late into the fourth quarter of 2015 as the election date approaches," Dong said. (By Jeffrey Wu)


Updated : 2021-01-26 21:31 GMT+08:00