With Taiwan’s presidential election concluded, the local stock market would see reduced political uncertainty, while investors are expected to focus back on fundamentals, Mega International Investment Services Corp (兆豐國際投顧) analyst Alex Huang (黃國偉) said on Saturday.
Uncertainty resulting from the election had sent the local stock market into consolidation mode, with the TAIEX falling 6.31 points last week to end at 17,512.83 on Friday, Huang said.
It was the second consecutive week of decline for the benchmark index.
Photo: CNA
Meanwhile, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is to hold an investors’ conference on Thursday, during which it would likely discuss its outlook for the IC sector, offer details on its business performance in the fourth quarter of last year and give guidance for this year.
Investors at home and abroad have been keeping a close eye on the TSMC conference in the hope of gaining more clues about the development of the semiconductor industry following a slow year amid inventory adjustments.
Hua Nan Securities Investment Management Co (華南投顧) chairman David Chu (儲祥生) said that the stock market’s fundamentals would not really be affected by the results of the presidential election.
Democratic Progressive Party (DPP) presidential candidate and Vice President William Lai (賴清德) and his running mate, Hsiao Bi-khim (蕭美琴), won the presidential election with 5,586,019 votes, or 40.05 percent of the total, Central Election Commission data showed.
“Any election is only a brief interlude. Investors will quickly return to fundamentals,” Chu said.
After a recent aggressive rate hike cycle, the US Federal Reserve is expected to start cutting rates this year, and stock markets are likely to ride waves of ample liquidity due to an inflow of foreign funds resulting from a weak US dollar, he said.
Foreign institutional investors are expected to continue buying Taiwanese shares this year after registering a net buy of more than NT$420 billion (US$13.5 billion) in shares during the November-to-December period, pushing the TAIEX toward 18,000 points, he added.
Given that the DPP would continue to hold the presidency after the election, stocks in industries supported by the government, such as green energy, biotech and military equipment suppliers, could move higher today, Taishin Securities Investment Advisory Co (台新投顧) analyst Tony Huang (黃文清) said.
In addition, buying could also focus on semiconductor stocks and stocks related to artificial intelligence development, he said.
However, China could expand its suspension of certain benefits provided by the Economic Cooperation Framework Agreement due to the DPP victory, Chu said.
On Dec. 21 last year, the Chinese Customs Tariff Commission announced it was suspending preferential tariffs on 12 petrochemical products, including propylene and paraxylene, citing trade barriers imposed by Taiwan on similar products.
Nvidia Corp’s demand for advanced packaging from Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) remains strong though the kind of technology it needs is changing, Nvidia CEO Jensen Huang (黃仁勳) said yesterday, after he was asked whether the company was cutting orders. Nvidia’s most advanced artificial intelligence (AI) chip, Blackwell, consists of multiple chips glued together using a complex chip-on-wafer-on-substrate (CoWoS) advanced packaging technology offered by TSMC, Nvidia’s main contract chipmaker. “As we move into Blackwell, we will use largely CoWoS-L. Of course, we’re still manufacturing Hopper, and Hopper will use CowoS-S. We will also transition the CoWoS-S capacity to CoWos-L,” Huang said
Nvidia Corp CEO Jensen Huang (黃仁勳) is expected to miss the inauguration of US president-elect Donald Trump on Monday, bucking a trend among high-profile US technology leaders. Huang is visiting East Asia this week, as he typically does around the time of the Lunar New Year, a person familiar with the situation said. He has never previously attended a US presidential inauguration, said the person, who asked not to be identified, because the plans have not been announced. That makes Nvidia an exception among the most valuable technology companies, most of which are sending cofounders or CEOs to the event. That includes
INDUSTRY LEADER: TSMC aims to continue outperforming the industry’s growth and makes 2025 another strong growth year, chairman and CEO C.C. Wei says Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), a major chip supplier to Nvidia Corp and Apple Inc, yesterday said it aims to grow revenue by about 25 percent this year, driven by robust demand for artificial intelligence (AI) chips. That means TSMC would continue to outpace the foundry industry’s 10 percent annual growth this year based on the chipmaker’s estimate. The chipmaker expects revenue from AI-related chips to double this year, extending a three-fold increase last year. The growth would quicken over the next five years at a compound annual growth rate of 45 percent, fueled by strong demand for the high-performance computing
TARIFF TRADE-OFF: Machinery exports to China dropped after Beijing ended its tariff reductions in June, while potential new tariffs fueled ‘front-loaded’ orders to the US The nation’s machinery exports to the US amounted to US$7.19 billion last year, surpassing the US$6.86 billion to China to become the largest export destination for the local machinery industry, the Taiwan Association of Machinery Industry (TAMI, 台灣機械公會) said in a report on Jan. 10. It came as some manufacturers brought forward or “front-loaded” US-bound shipments as required by customers ahead of potential tariffs imposed by the new US administration, the association said. During his campaign, US president-elect Donald Trump threatened tariffs of as high as 60 percent on Chinese goods and 10 percent to 20 percent on imports from other countries.
RSS