The TAIEX might consolidate with a positive bias after Double Ten National Day, as local tech firms emerge from inventory adjustments while investment demand from mutual funds and local life insurers remains strong, analysts said, while downplaying the impact of Hamas’ attack on Israel.
Economic fundamentals should lend support to the local bourse this quarter when the year-long inventory corrections come to an end, First Capital Management Inc (第一金證券投顧) said in a note.
Laptop makers have completed inventory adjustments and selling prices for memory chips have stabilized, it said.
Photo: Cheng I-hwa, Bloomberg
Furthermore, US graphics processing unit vendor Nvidia Corp has secured vital capacity to fill orders, allowing its Taiwanese supply-chain firms to ramp up production, it added.
Taishin Securities Investment Advisory Co (台新投顧) said that global financial markets have over the past two days assigned more importance to dovish statements on interest rate hikes from US Federal Reserve officials than the surprise conflict in the Middle East.
In Asian trading yesterday, Japan’s Nikkei 225 rallied 2.43 percent while Hong Kong’s Hang Seng Index picked up 0.84 percent. India’s Sensex advanced 0.9 percent, Australia’s S&P/ASX 200 rose 1 percent and Thailand’s SET gained 0.2 percent, while China’s Shanghai Composite Index was down 0.7 percent and South Korea’s KOSPI slipped 0.3 percent.
Taiwan’s bourse is likely to copy the uptick today after investors return from the holiday, Taishin Securities said.
The upcoming earnings season would dominate investment sentiment and the landscape should look brighter, Capital Investment Management Corp (群益投顧) said.
Smartphone camera lens maker Largan Precision Co (大立光) is to hold an investors’ conference tomorrow and Taiwan Semiconductor Manufacturing Co (台積電) is to hold its conference on Thursday next week.
The National Financial Stabilization Fund is due for a quarterly meeting today and members are to discuss global economic issues that might affect the TAIEX, said Deputy Minister of Finance Frank Juan (阮清華), the fund’s executive secretary.
Juan attributed the local bourse’s earlier rout to jitters over further monetary tightening by the US and a potential second wave of inflation.
As a result, global funds pulled out of emerging markets, including Taiwan, he said.
In addition, Taiwan is today to release last month’s export data, which have a fair chance of reversing the year-long contraction thanks in part to a low base last year, the Ministry of Finance said earlier.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday obtained the government’s approval to inject an additional US$7.5 billion into its US subsidiary, the Department of Investment Review said in a statement. The department approved TSMC’s application of investing in TSMC Arizona Corp, which is engaged in the manufacturing, sales, testing and design of IC and other semiconductor devices, it said. The latest capital injection follows a US$5 billion investment for TSMC Arizona approved in June. The chipmaker has broken ground on two advanced fabs in Arizona with aggregated investments approved by the department totaling US$24 billion thus far. According to TSMC, the first Arizona
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