Peter Kurz News
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Taiwan’s plans to boost its stock market drew skepticism from Citigroup Inc. to FPP Asset Management LLP even as the island’s U.S.-traded shares jumped the most since April.
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Taiwan is studying measures to bolster stocks and plans to unveil a proposal in a month, according to Cabinet spokeswoman Cheng Li-wun.
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Taiwan’s new listings by local and overseas companies will “energize” the stock market and draw more capital as technology-led gains falter, according to Citigroup Inc.
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Taiwan shares may rally in the fourth quarter as President Ma Ying-jeou ’s ruling Kuomintang party offers “goodies” and other incentives to help win local elections, Citigroup Inc.’s Research Head Peter Kurz said.
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The re-election of Taiwanese President Ma Ying-jeou, a booster of closer ties with China, is bullish for the island’s financial markets, according to Bank Julius Baer & Co., Citigroup Inc. and Uni-President Assets Management Corp.
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The best Chinese stock values these days are in Taiwan, where dividend yields lead Asia’s 10 biggest markets and economic growth matches the mainland, said Chris Ruffle , manager of the island’s best-performing mutual funds.
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Taiwan President Ma Ying-jeou was re-elected emphasizing his success easing tensions with China. Now comes the hard part: building on those gains in his final four-year term without diluting the island’s autonomy.
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The Taiwan Stock Exchange expects more than 50 new listings this year as the island courts investment to capitalize on improved relations with China.
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Vodafone Group Plc , the biggest mobile-phone company by sales, is selling its entire 3.2 percent stake in China Mobile Ltd. for about $6.6 billion, according to terms of the offer obtained by Bloomberg News.
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A stock-market slump that dragged Taiwan and South Korea’s benchmark indexes 20 percent below their highs prompted state-run funds to buy equities and Korean regulators to bolster scrutiny of trading activities. Benchmark indexes narrowed earlier declines.
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