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Ma-Xi meeting to provide short-term boost to market sentiment: UBS

Ma-Xi meeting to provide short-term boost to market sentiment: UBS

Taipei, Nov. 5 (CNA) Swiss brokerage firm UBS Securities said that President Ma Ying-jeou's (???) historic Nov. 7 meeting with Chinese President Xi Jinping (???) will provide only a short-term boost to market sentiment in Taiwan. William Dong (???), equities and research head of UBS Securities' Taipei branch, said the Taiwan stock exchange's benchmark index, the Taiex, rose sharply Wednesday by 1.7 percent on a rise in regional markets and news of the meeting between Ma and Xi. "The hope here is that the meeting will bring closer ties with China and further improve economic relations between the two sides, especially considering recent interest by Chinese companies such as Tsinghua Unigroup (??) in collaborating with and/or investing in semiconductor companies in Taiwan," Dong wrote in a note to clients on Wednesday. While Taiwan is scheduled to hold a presidential election Jan. 16, Dong said he expects cross-Taiwan Strait relations to be a hot topic of debate between the ruling Kuomintang's (KMT's) presidential candidate Eric Chu (???) and opposition Democratic Progressive Party (DPP) candidate Tsai Ing-wen (???). "Although the meeting between presidents Ma and Xi came as a surprise to the market, the increased focus on cross-strait relations ahead of the election should not be a surprise," the UBS analyst said. "We expect the upcoming meeting to provide a short-term boost to market sentiment. However, separating the hype from the reality, we are not anticipating any immediate breakthroughs, as it might be difficult for the KMT and DPP to come to any consensus ahead of the election," Dong added. The Taiex was little changed as of 11:50 a.m. Thursday after Ma delivered his first public remarks at 10 a.m. in Taipei about his decision to meet with Xi. According to Ma, the meeting in Singapore is not intended to enhance his personal legacy, or to influence the outcome of Taiwan's presidential election next January. The face-to-face encounter -- the first in nearly seven decades between the top leaders of the two former civil war foes -- is aimed at preserving the spirit of cross-strait cooperation and establishing a mechanism for regular meetings between leaders of Taiwan and China, Ma said. (By Jeffrey Wu)


Updated : 2021-09-24 17:59 GMT+08:00