RECOVERY:Credit Suisse recommended high-tech stocks, saying that the sector is expected to post a 19 percent annual rise in profits next year
Date: Dec 12, 2016
By: Staff writer, with CNA
Credit Suisse Group AG projected that the TAIEX would rise to 9,700 points next year, as listed companies see improvements in their bottom lines amid a domestic and global economic recovery.
“We believe Taiwan’s equity market will see better earnings growth of 15 percent in 2017 versus the modest decline in 2016,” Credit Suisse said in a report issued on Wednesday last week.
“The better growth will be driven by better global growth and exports, lowered base and earnings expectations after cuts in 2016, and a likely stronger Apple [Inc] product cycle in 2017,” it added.
On Friday last week, the TAIEX rose 0.18 percent to 9,392.68 points. Since the beginning of the year, the index has gained 12.65 percent on the back of strong foreign institutional buying in large-cap stocks such as Taiwan Semiconductor Manufacturing Co (台積電), which supplies chips for Apple’s iPhone 7 series. [FULL STORY]