Market to get back on track after elections, analyst says – Taipei Times

With Taiwan's presidential election over, the local stock market would see a reduction in political uncertainty, while investors are expected to refocus on fundamentals, analyst at Mega International Investment Services Corp (兆豐) said on Saturday.國際投顧), Alex Huang (黃國偉).

Uncertainty resulting from the election had pushed the local stock market into a consolidation mode, with the TAIEX falling 6.31 points last week to close at 17,512.83 on Friday, Huang said.

It was the second consecutive week of decline for the benchmark index.

Meanwhile, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) will hold an investor conference on Thursday, during which it will likely discuss its outlook for the integrated circuit sector, provide details on its business performance in the fourth quarter of last year and will provide guidance. for this year.

Investors at home and abroad have been closely following the TSMC conference in hopes of getting more clues on the development of the semiconductor industry after a slow year amid inventory adjustments.

Hua Nan Securities Investment Management Co (華南投顧) Chairman David Chu (儲祥生) said stock market 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, data from the Central Election Commission showed.

“Any election is just 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 begin cutting rates this year, and stock markets are likely to experience waves of ample liquidity due to an influx of foreign funds resulting from a weak US dollar, he said.

Foreign institutional investors are expected to continue buying Taiwanese stocks this year after recording a net purchase of more than NT$420 billion (US$13.5 billion) in stocks during the November-December period, pushing the TAIEX towards 18,000 points, it added.

With the DPP still holding the presidency after the election, shares of government-supported industries such as green energy, biotechnology and military equipment suppliers could rise today, said Tony, an analyst at Taishin Securities Investment Advisory Co (台新投顧). Huang (黃文清) said.

Additionally, buying could also focus on semiconductor stocks and stocks related to artificial intelligence development, he said.

However, China could extend its suspension of certain benefits provided by the Economic Cooperation Framework Agreement due to the DPP's victory, Chu said.

On Dec. 21 last year, China's Customs Tariff Commission announced it would suspend preferential tariffs on 12 petrochemical products, including propylene and paraxylene, citing trade barriers imposed by Taiwan on similar products.