Brokerage adjusts TAIEX goal to 10,239 points
A Japan-based foreign brokerage has revised its target for the Taiwan Stock Exchange weighted index from 9,886 points to 10,239 points, citing better-than-expected earnings forecasts for financials.
In a research note on Monday, the Japanese brokerage said there were notable fund flows on the TAIEX last week in tech sub-sectors and among financial stocks, despite expected weaker demand for tech products in the second quarter of 2015.
The increased net buying was driven by higher earnings forecasts for several financial companies, new market liberalization measures and investor optimism toward potential stock connect programs, the brokerage said.
It said its preferred stocks in the financial sector were Fubon Financial Holding Co. ( ), Cathay Financial Holding Co. ( ), E. Sun Financial Holding Co. (
), and Mega Financial Holding Co. ( ). Under Taiwan’s regulations, the name of the brokerage cannot be reported because it was offering specific forecasts that could influence the market.