TSMC Posts Record 10-Week Gain as Foreigners Flock to Taiwan
TSMC Completes Record 10-Week Gain as Foreigners Flock to Taiwan
(Bloomberg) -- Taiwan’s stock market is luring foreign money in a way not seen since 2014. The result is a record 10-week winning streak for Apple Inc.’s primary chip supplier.
Overseas investors have been net buyers of Taiwan stocks for 12 straight weeks, matching the buying run ended in August 2014. About 30% of the nearly $9 billion of inflows went to Taiwan Semiconductor Manufacturing Co., which just posted its longest winning streak since its 1994 debut.
Shares of Taiwan’s largest company hit another all-time high this week. Better-than-expected demand for Apple’s iPhone, optimism on the upcoming 5G smartphone cycle, and the economy’s resilient growth are all driving the enthusiasm for Taiwan assets.
Taiwan stocks have gained 19% this year, the second-best performer in the Asia-Pacific region after New Zealand. The benchmark Taiex eked out a 0.4% rise this week.
Foreign investors have poured $8.7 billion into Taiwan-listed equities year-to-date, the second-most among the 10 Asian markets tracked by Bloomberg after India. The market value of Taiwan stocks in foreign hands rose to a record of 40% in October.
“We believe abundant liquidity will continue to provide support to the Taiex in 2020,” UBS analysts including William Dong wrote in a note Friday, adding that Taiwan’s dividend yield is attractive amid low interest rates globally.
To contact the reporters on this story: Cindy Wang in Taipei at hwang61@bloomberg.net;Elena Popina in Hong Kong at epopina@bloomberg.net
To contact the editors responsible for this story: Sofia Horta e Costa at shortaecosta@bloomberg.net, Fran Wang, Samson Ellis
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