Houston Community News >> Taiwan Shows How to be Number One
4/1/2008 (Shanghai Daily)-- TAIWAN'S Taiex
Index beat the world's biggest stock markets in the first quarter on
prospects the election of Ma Ying-jeou as the island's leader will help
ease travel and investment restrictions with the fastest-growing major
economy.
The Taiex posted the only gain among benchmark indexes for the 20 largest markets, climbing 0.8 percent in the three months ended March 31, according to data compiled by Bloomberg News. The Standard & Poor's 500 Index, Japan's Topix Index and the UK's FTSE 100 Index all declined, while the MSCI World Index posted its worst quarterly drop since 2002, the data show. Taiwan's benchmark retreated 1.8 percent yesterday, against a 0.1 percent decline in the MSCI World.
The leadership election of Ma Ying-jeou from the opposition Kuomintang party on March 22 helped the Taiex race past Brazil's Bovespa Index, the best performer in the first two months. Hung Poo Real Estate Development Corp and Formosa International Hotels Corp led the gains. Taiwan has restricted direct shipping, air and postal links with Chinese mainland since the Kuomintang retreated to the island in 1949.
"Taiwan's election result has changed sentiment," said Nicole Sze, a Singapore-based investment analyst at Bank Julius Baer & Co, which manages US$350 billion in assets worldwide. "Investors are now more positive on trade between the island and China's mainland and political stability in the region."
Slow Changes
Changes promised by Ma, which include opening up the market to mainland tourists and resuming direct flights, won't happen overnight and the island isn't immune to contagion from mounting credit losses worldwide, according to Louisa Lo, head of Asian equities at Schroders Plc in London.
Taiex companies trade for 18.4 times reported profit, the fourth-highest among the 20 biggest stock markets. The MSCI Emerging Markets Index of developing nations trades for 15 times reported earnings.
Stronger ties with Chinese mainland could attract about US$50 billion to the island's markets, according to UBS AG. Seven of the Taiex's 10 biggest gains last quarter were in property and construction stocks, including Hung Poo Real Estate Development and Cathay Real Estate Development.
(Contributed by Shanghai Daily)
The Taiex posted the only gain among benchmark indexes for the 20 largest markets, climbing 0.8 percent in the three months ended March 31, according to data compiled by Bloomberg News. The Standard & Poor's 500 Index, Japan's Topix Index and the UK's FTSE 100 Index all declined, while the MSCI World Index posted its worst quarterly drop since 2002, the data show. Taiwan's benchmark retreated 1.8 percent yesterday, against a 0.1 percent decline in the MSCI World.
The leadership election of Ma Ying-jeou from the opposition Kuomintang party on March 22 helped the Taiex race past Brazil's Bovespa Index, the best performer in the first two months. Hung Poo Real Estate Development Corp and Formosa International Hotels Corp led the gains. Taiwan has restricted direct shipping, air and postal links with Chinese mainland since the Kuomintang retreated to the island in 1949.
"Taiwan's election result has changed sentiment," said Nicole Sze, a Singapore-based investment analyst at Bank Julius Baer & Co, which manages US$350 billion in assets worldwide. "Investors are now more positive on trade between the island and China's mainland and political stability in the region."
Slow Changes
Changes promised by Ma, which include opening up the market to mainland tourists and resuming direct flights, won't happen overnight and the island isn't immune to contagion from mounting credit losses worldwide, according to Louisa Lo, head of Asian equities at Schroders Plc in London.
Taiex companies trade for 18.4 times reported profit, the fourth-highest among the 20 biggest stock markets. The MSCI Emerging Markets Index of developing nations trades for 15 times reported earnings.
Stronger ties with Chinese mainland could attract about US$50 billion to the island's markets, according to UBS AG. Seven of the Taiex's 10 biggest gains last quarter were in property and construction stocks, including Hung Poo Real Estate Development and Cathay Real Estate Development.
(Contributed by Shanghai Daily)