FX168 Financial News (Hong Kong) News Taiwan's stock market has recently continued to be supported by shipping stocks and semiconductor stocks, while traditional industry stocks have also risen, making the large-cap index expected to challenge the all-time high of 17709 points again. The impact of the Fed's hawkish rhetoric has not been too strong, and the US Treasury yields have turned down, boosting the strength of technology stocks. Wafer foundry leader TSMC completed the first day of ex-dividend filling yesterday, driving Taiwan stocks to open lower and higher to usher in a new high in the rebound band. Analysts pointed out that the base of Taiwan stocks is healthy, coupled with the upcoming entry into the traditional peak season of electronics, investors should not set limits on the Market of Taiwan stocks in the second half of the year.
Yesterday's Taiwan stocks closed:
In view of the Fed's expectation of raising interest rates to 2023, Taiwan's stock market fell more than 100 points in early trading on Thursday (June 17), but supported by traditional ethnic groups such as steel and papermaking, coupled with the strong return of shipping stocks, and semiconductor stocks with TSMC struggling to assist, the market finally rose 82.75 points, closed at a high of 17390.61 points, and the trading volume shrank to NT$439.38 billion. TSMC (TW2330) completed the interest rate filling, and the final market rose 0.58% to NT$606.
U.S. stocks overnight trend:
After the Fed FOMC meeting turned hawkish, the US Treasury yield turned from boom to bust on Thursday (June 17), boosting the rise of technology stocks, but cyclical stocks suppressed the gains of the broader market, and the four major indexes rose and fell. The overnight buy-back operation (ON RRP) reached $756 billion on Thursday, a record high of more than $500 billion for seven consecutive trading days. The Fed on Wednesday announced raising its overnight buyback operation by 5 basis points to 0.05 percent and the excess reserve requirement rate (IOER) by five basis points to 0.15 percent.
The Dow Jones fell 210.22 points or 0.62 percent to close at 33,823.45 points; the S&P 500 fell 1.84 points or 0.04 percent to close at 4,221.86 points; the Nasdaq rose 121.67 points, or 0.87 percent, to close at 14,161.35 points; and the Philadelphia Semiconductor Index rose 30.70 points or 0.96 percent to close at 3231.71 points.
Taiwan stocks of American Depositary Receipts (ADRs) rose in tandem, with TSMC ADR up 1.32%; Riyueguang ADR up 2.01%; UMC ADR up 2.55%; and Chunghwa Telecom ADR up 0.54%.
Institutional Pre-Market Analysis:
Nomura pointed out that Taiwan's weighted stock price index has rebounded more than 2,000 points in the past month, one of the best in the global stock market, so even if there is a correction of more than 100 points in the short term, it is reasonable and there is no need to panic. After the outbreak of the epidemic in Taiwan, the Comptroller's Planning Office still revised taiwan's GDP estimates for this year from the original 4.64% to 5.46%, and they also revised up the average annual growth rate of Taiwan stocks per share (EPS) this year, from 16% at the end of January to the current 45% month by month. Taiwan's situation from the general economy to the individual economy is good, the stock market base is healthy, coupled with the upcoming entry into the traditional electronic peak season, investors should not set their own limits on the Taiwan stock market in the second half of the year.
Shen Wanjun, manager of Fuhua Small and Medium-sized Select Fund, said that the new crown epidemic is a short-term interference, due to the positive overall economic trend, driven by demand, it is estimated that the economy and corporate profits in 2021-22 are expected to continue to grow, and the chips of technology stocks have precipitated since this year, but the medium- and long-term outlook is quite optimistic, and the follow-up momentum can be expected.
Zhu Feili, manager of Fuhua Chuanjia No. 2 Fund, believes that the water level of the Taiwan Equity Balanced Fund is flexibly adjusted, the allocation of individual stocks comprehensively considers growth and volatility, and participates in long-term investment opportunities in the Taiwan stock market with lower volatility.
Key events:
Wafer foundry leader TSMC completed the first day of ex-dividend filling yesterday, driving Taiwan stocks to open lower and higher to usher in a new high in the rebound band. The legal person pointed out that TSMC's ex-dividend performance was better than expected, electronic stocks have the opportunity to gradually return to the mainstream, and the broader market is expected to challenge the record high of 17709 points. This is the fourth time since TSMC implemented the interest distribution, the first day of successful filling, foreign capital and investment credit to buy more than 2280 and 221 tickets respectively. Chen Yiguang, chairman of the First Financial Investment Advisory Board, and Huang Wenqing, deputy general manager of Taixin Investment, believe that some funds will gradually be transferred to electronic stocks, and then there will be a settlement of the rich Taiwan period, but there are not many foreign empty orders.
Japanese media Sankei Biz and Taiwanese digital times reported that Mitsubishi Electric is considering seeking cooperation with TSMC to produce power semiconductors on a foundry basis. In an interview with TSMC's rumors of plans to build a semiconductor plant in Kumamoto Prefecture, Japan, Mitsubishi Electric President Takeshi Akiyama said in an interview that it is very possible to cooperate on foundries because the two companies' R&D bases will be close together.
Semiconductor process engineering can be roughly divided into the "front-end process" of forming a circuit on a silicon wafer, and the "back-stage process" of assembly and packaging. Mitsubishi Electric has the main factory of the front-end process in Ikeshi City, Kumamoto Prefecture, and the main factory and R&D base of the latter-stage process in Fukuoka City, and because of the optimism about the increase in demand for power semiconductors, Mitsubishi Electric acquired Sharp's plant in Fukuyama City, Hiroshima Prefecture last year, which will serve as the production base for the front-end process and open it in the fall of this year. Mitsubishi Electric is planning to entrust surface processing production to TSMC based on the consideration of risk diversification.
Focus Stock Information:
Wire packaging is in short supply, customers in order to seek stable supply, have signed a long contract with the packaging and testing factory, the packaging and testing factory Lingsheng (TW2369) has also received a number of customer long orders, the production line is fully loaded. In order to meet the demand, the second half of the year will start a new round of expansion, is expected to open the fourth quarter, this year's capital expenditure will jump 2 times compared with last year, next year's revenue is expected to jump again, corporate monthly revenue is expected to increase by about 30% per year.
Taiwan Rubber (TW2103) held an online law said that executive officer Cai Weiqiang pointed out that although the global economy continues to recover, but due to the warming up of the epidemic in Asia, some favorable factors that support the recovery of the market may change in the second half of the year, and the market uncertainty is high, but it will not change the general direction.
Huaxin (TW1605) announced that from December 29 last year to June 17 this year, with an average of NT$30.33 per share, a total of NT$1.8 billion, it acquired 59,335 TCM (TW1504) shares, with a shareholding ratio of 10.77%, and actively distributed a consolidated vote source for TECO.