Banking, certain IT shares to shine in March: experts
The China Post news staffTAIPEI, Taiwan -- Banking and certain information technology shares are expected to shine on the Taiwan Stock Exchange in March, said analysts yesterday.
March 1, 2013, 1:38 pm TWN
They made the remarks after stocks closed higher for the month on Wednesday, the last trading day of February. Yesterday, Feb. 28, was a national holiday commemorating the tragic 228 Incident of 1947.
The TAIEX closed up 17.08 points to finish at 7,879.98 on Wednesday, ending higher for the month for four months in a row — a trend that hasn't been seen in two years.
As for the near future, most analysts offer upbeat assessments on stocks, citing various factors.
“Internationally, concerns remain in the United States over an impending sequestration, which will result in spending cuts at federal agencies,” said Chen Si-ming, fund manager with First Securities. “Yet, positive figures have been given by the U.S. government as well as many American enterprises. Once the sequestration problem is taken care of, a continued recovery in the U.S. is expected.”
As for Europe, its debt crisis has waned, while Germany, a major European economy, has seen its manufacturing expand in February, Chen said. Making things better, China has unveiled an urban revitalization program which is likely to help keep the country's growth at 8 percent this year, he added.
“Being an export-driven economy, Taiwan is expected to see moderate growth in 2013,” Chen said. “And the growth will be reflected in stocks in the months ahead.”
Among possible winning shares in March, banking shares are expected to perform strongly, as Taiwan banks have begun renminbi-related business in the wake of the establishment of a currency clearance system between China and Taiwan, said Wu Wen-tung, an investor with Capital Securities.
According to analysts, other stocks to watch for in March include shares related to smartphones and tablet PCs, which are expected to see strong demand.
Credit Suisse, for example, is upbeat about companies in the smartphone and tablet PC supply chains and recommends five shares, namely TPK Holding, Taiwan Semiconductor Manufacturing Co. (TSMC), Siliconware Precision Industry Ltd. (SPIL), Advanced Semiconductor engineering (ASE), and Kinsus Interconnect Technology Corp.
TPK makes panels for smart devices. TSMC makes chips that power smart devices, while ASE and SPIL test and package those chips.