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.
TECH BOOST: New TSMC wafer fabs in Arizona are to dramatically improve US advanced chip production, a report by market research firm TrendForce said With Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) pouring large funds into Arizona, the US is expected to see an improvement in its status to become the second-largest maker of advanced semiconductors in 2027, Taipei-based market researcher TrendForce Corp (集邦科技) said in a report last week. TrendForce estimates the US would account for a 21 percent share in the global advanced integrated circuit (IC) production market by 2027, sharply up from the current 9 percent, as TSMC is investing US$65 billion to build three wafer fabs in Arizona, the report said. TrendForce defined the advanced chipmaking processes as the 7-nanometer process or more
China’s Huawei Technologies Co (華為) plans to start mass-producing its most advanced artificial intelligence (AI) chip in the first quarter of next year, even as it struggles to make enough chips due to US restrictions, two people familiar with the matter said. The telecoms conglomerate has sent samples of the Ascend 910C — its newest chip, meant to rival those made by US chipmaker Nvidia Corp — to some technology firms and started taking orders, the sources told Reuters. The 910C is being made by top Chinese contract chipmaker Semiconductor Manufacturing International Corp (SMIC, 中芯) on its N+2 process, but a lack
Who would not want a social media audience that grows without new content? During the three years she paused production of her short do-it-yourself (DIY) farmer’s lifestyle videos, Chinese vlogger Li Ziqi (李子柒), 34, has seen her YouTube subscribers increase to 20.2 million from about 14 million. While YouTube is banned in China, her fan base there — although not the size of YouTube’s MrBeast, who has 330 million subscribers — is close to 100 million across the country’s social media platforms Douyin (抖音), Sina Weibo (新浪微博) and Xiaohongshu (小紅書). When Li finally released new videos last week — ending what has
OPEN SCIENCE: International collaboration on math and science will persevere even if the incoming Trump administration imposes strict controls, Nvidia’s CEO said Nvidia Corp CEO Jensen Huang (黃仁勳) said on Saturday that global cooperation in technology would continue even if the incoming US administration imposes stricter export controls on advanced computing products. US president-elect Donald Trump, in his first term in office, imposed restrictions on the sale of US technology to China citing national security — a policy continued under US President Joe Biden. The curbs forced Nvidia, the world’s leading maker of chips used for artificial intelligence (AI) applications, to change its product lineup in China. The US chipmaking giant last week reported record-high quarterly revenue on the back of strong AI chip
RSS