Taiwan Stocks Take A Short Break

The weighted index of Taiwan stocks closed at 13,716 points on the 20th, down 5.99 points, but this week the index rose 443 points, a weekly increase of 3.34%. Experts pointed out that (1) vaccine development is optimistic, (2) In November, foreign capital has substantially replenished Taiwan stocks, (3) major semiconductor manufacturers have reported frequent profits, and (4) the peak consumption season at the end of the year is favorable for the technology industry to pull goods. The index may have a short-term adjustment, but due to multiple advantages such as fundamentals and capital, The shock amplitude should be limited.

Foreign investment has bought more than 146.8 billion yuan in November. Prudential’s high-growth fund manager Ye Xianwen said that with the development of vaccines, the trend is optimistic, which has driven foreign capital to replenish Taiwan stocks since November, not only ending the three-month decline in overselling Taiwan stocks , Also rewrite the year-to-date single-month maximum over-purchase amount, in line with the continued profitability of major semiconductor manufacturers, and the end-of-the-year consumption peak season is conducive to the pull of the technology industry. The performance of related supply chains, including mobile phones, tablets, etc. new highs.

Ye Xianwen pointed out that groups previously suppressed by the epidemic, such as low-base production and financial-related stocks, have apparently staged rounds of market gains since the vaccine data reported good news. Instead, the electronic stocks that had previously experienced strong gains temporarily recovered. However, in the long run, the demand for semiconductors and electronic components driven by new technologies such as 5G, high-speed computing, and long-distance business opportunities will continue to be the mainstream and index drivers of Taiwan stock investment in the future.

The rapid increase in the scale of assets of the three major central banks in the world has helped to improve the evaluation of Taiwan stocks. According to historical experience, the evaluation often lags behind. Ye Xianwen expects that the capital market of Taiwan stocks is just beginning. There is an upside opportunity.

Ye Xianwen believes that it is estimated that after this wave of celebrations recedes, the index may undergo a short-term adjustment. However, Taiwan stocks have many advantages such as fundamentals, funding, and long-term dividend rates. The range of fluctuations is expected to be limited. Layout and select industries whose annual growth is expanding quarter by quarter.

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