EDUCATED GUESS: A fund manager said data released by the US and China had raised concerns and might result in local equities being restricted to narrow-range trading
Date: Mar 18, 2019
By: Chen Cheng-hui / Staff reporter
Equity investors are advised to pick stocks that have stable profitability and growth potential, or switch to defensive stocks as the local bourse appears to be about to encounter technical corrections after a strong rebound over the past few weeks, analysts said.
“The main bourse has rebounded recently along with the climb in US equities, with the TAIEX reaching 10,439.24 points on Friday to hit the highest level this year, in part because of investor optimism toward the US Federal Reserve’s monetary policy and the US-China trade talks,” Jih Sun Securities Investment Trust Co (日盛投信) fund manager Chang Ya-wei (張亞瑋) said in a note on Friday.
However, local equities might be confined to narrow-range trading in the near future, because of the market’s worries over recent economic data released by the US and China, which pointed to a potential downside risk to the business climate, he said.
The year-to-date upturn in stocks might also lead some investors to lock in profits for the time being, pushing the market toward consolidation, he added. [FULL STORY]