Fubon Securities bullish on earnings of local listed companies
By Kao Shih-ching / Journalist
Fubon Securities Investment Services Co (å¯é¦ æ é¡§) sees the combined profit of all local listed companies increase 30% year-on-year to reach NT $ 3.3 trillion ($ 117.9 billion) this year, throwing thus the bases for TAIEX to progress, Fubon Securities Investment Services chairman Charles Hsiao (èä¹¾ç¥¥) said yesterday during a video conference.
The company has an optimistic outlook on local businesses thanks to the country’s strong export orders, which reached a record high of US $ 256.1 billion in the first five months of the year, as well as robust growth in their earnings in the first quarter, Hsiao mentioned.
The company expects the average forward price-to-earnings (PE) ratio of local listed stocks to be 14-17, and the TAIEX to be between 15,000 and 18,600 points by the end of this year. , did he declare.
Photo courtesy of Fubon Financial Holding Co
Unlike the trailing PE ratio, the ratio of a company’s current stock price to its past earnings per share, the forward PE ratio uses a company’s estimated future earnings and indicates whether a stock is worth it. to be bought.
However, given that the TAIEX is at a relatively high level and that foreign institutional investors have been net sellers of local stocks over the past two months, it is likely that volatility would increase in the second half of the year, a he added.
Hsiao recommended that investors hedge against this volatility in four sectors: chipmakers; suppliers of high-speed communication equipment; green energy and sports and recreation, such as manufacturers of sports equipment and clothing.
Separately, net outflows of foreign funds totaled $ 1.91 billion last month, the highest in a single month this year, according to data from the Financial Supervisory Commission.
The cash outflows could be attributed to foreign investors who sold NT $ 51.03 billion net of local stocks last month, according to data from the Taiwan Stock Exchange.
In the first six months of the year, foreign institutional investors sold NT $ 382.7 billion net of local stocks.
This breaks down into a net sale of NT $ 384.7 billion of shares listed on the Taiwan Stock Exchange and a net purchase of NT $ 2 billion of shares listed on the Taipei Stock Exchange, according to commission data.
However, Taiwan recorded a net inflow of foreign funds of US $ 10.91 billion in the first half of this year.
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