Taiwan Stocks Close at Record High on Tech Rebound, Retail Boom
Taiwan Stocks Close at Record High on Tech Rebound, Retail Boom
(Bloomberg) -- Taiwan’s equity benchmark closed at a record high as a global rebound in tech hardware shares extended and retail investors continued to pile in.
The Taiex Index closed 0.5% higher on Monday at 18,048.94, surpassing its previous record close at 18,034.19 on July 15. The gauge has risen almost 23% so far this year, poised for a third annual gain and outperforming most Asian peers.
A sector rotation to hardware technology stocks has lifted the island’s chipmakers this year with semiconductor firm MediaTek Inc. and electronics products maker United Microelectronics Corp. contributing the most to the index’s move since its previous record in July. The market has also received support from mom-and-pop investors who have ramped up their leveraged bets amid the stellar rally.
“Taiwan stocks are likely to rise further next year due to ample funding and positive tech outlook,” said Quincy Liu, chairman of Shin Kong Investment Trust Co. “Wafer and foundry industries are expected to remain healthy next year.”
The market has rebounded since suffering a technical correction in May amid concerns over the pandemic and the global selloff in tech shares, despite foreign capital outflows that totaled $17.5 billion this year through Friday.
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