Daiwa Securities raises 6-month TAIEX target to 8,800
CNATAIPEI--Daiwa Securities has raised its six-month target for the Taiwan capitalization weighted index (TAIEX) to 8,800 points, from 8,200 points, as economic fundamentals have shown signs of improving.
October 6, 2013, 12:08 am TWN
In addition, Daiwa Securities said large foreign fund inflows are expected to continue to provide support to the local bourse and push the index to a level higher than the brokerage had previously expected.
In a recent research note, the Japan-based brokerage said Taiwan's gross domestic product (GDP) for 2013 is expected to grow 2.3 percent, an upgrade from its earlier estimate of a 2 percent increase, because of a recovering global economy.
In 2014, Daiwa Securities said Taiwan's GDP will likely grow 3 percent, higher than its previous prediction of 2.5 percent growth.
Still, the forecasts by Daiwa Securities are lower than the government's estimates, which said Taiwan's GDP will grow 2.31 percent and 3.37 percent in 2013 and 2014, respectively.
Daiwa Securities said Taiwan has become an attractive destination for foreign funds, although the U.S. Federal Reserve is likely to scale down its monthly US$85 billion bond buying program later in the year.
In September, foreign institutional investors served as net buyers of NT$121 billion (US$4.10 billion) worth of local shares, the highest monthly figure in 10 years. In the first four trading sessions, foreign institutional investors bought a net NT$20.8 billion.