Taiwan Stock Index Rises Above 10,000 for First Time in 17 Yearsby
Apple is driving shares over key level: Hua Nan Securities
Net inflows have swelled to $15 billion over past 12 months
Taiwan’s benchmark stock index closed above the 10,000 level for the first time since the peak of the dot-com bubble as foreign investors chased a global rally in technology shares.
Net inflows into Taiwan equities have swelled to more than $15 billion in the past 12 months, the most among 10 Asian markets tracked by Bloomberg outside of China. Apple Inc. suppliers, such as Taiwan Semiconductor Manufacturing Co., have been favorite targets amid optimism over demand for the next iPhone.
Along with equities, the island’s currency has also surged. The Taiwan dollar has jumped 7.7 percent against the greenback in the past year, the most among regional peers. While that poses a threat to an economy reliant on exports, Taiwan has weathered the impact so far. Orders for outbound shipments jumped 12 percent in March from a year earlier.
“Apple is a driver to Taiwan stocks to breach the 10,000 mark,” said David Lu, Taipei-based vice president at Hua Nan Securities Co. “Fundamentals will continue to improve in the second half.”
The Taiex rose 0.3 percent to 10,001.48 at the close on Thursday, taking its gain for the year to more than 8 percent. Optoelectronic and semiconductor shares have been among the leaders on the benchmark over the past 12 months.
TSMC provided the biggest boost to Taiwan’s benchmark on Thursday as it traded at a record price. The island’s most valuable company is now worth $178 billion. Apple this week became the first U.S. company with a market capitalization of more than $800 billion.
Hon Hai Precision Industry Co. closed unchanged for a second day as investors wait for its first-quarter earnings, which must be filed by May 15. The iPhone assembler fell short of estimates for sales in the first quarter.