TAIEX to outvie world markets five sessions short of 2014
By Kathryn Chiu ,The China PostTaiwan's benchmark TAIEX outperforms many other markets of countries including China, Singapore and Brazil five sessions short of each new year over the last decase, averaging 2-percent rally, according to a recent study.
December 26, 2013, 12:13 am TWN
United Evening News on Wednesady compiled the historical data of final five sessions of local benchmark Taiwan Capitalization Weighted Stock Index (TAIEX) over the last decade.
Based on the compilation, TWSE topped the table by posting gain of 1.8 percent, with China, Indonesia, India and Thailand rounding up top 5 by posting rallies of 1.56 percent, 1.51 percent, 1.43 percent and 1.39 percent.
Taiwan-based Capital Securities Investment Trust Company told the United Evening News that ample liquidity and government's inteference has balance out the impact caused by the taper-off of the U.S Federal Reserve's (Fed) bond-buing program.
JPMorgan's Taiwan Best Selection Fund manager Yeh Hung-ju (葉鴻儒) argued that foreign institutional investors have left Taiwan for vacation, leaving local institutional investors much bigger room for maneuver.
Capital Securities' fund manager Shen Wan-jun (沈萬鈞) indicated that despite disappointing gross domestic growth (GDP) for 2013, many Taiwan-listed companies who successfully carved out niche markets reported brilliant financial statements in Jan-Sep period, boding well for near-term performance of Taiwan's share market.
Sectorwise, Shen suggested investors to pay more attention to non-hightech sector likely to be boosted by traditional year-end re-stocking drive. Moreover, global economic recovery has prompted Chinese and American consumers to look for new cars, set to give a boost to local auto parts suppliers.