【Investment Insights Morning Update】Breaking 23,000 Points! ShinTech Group + JiaShiDa Union = Biotech Sector’s Main Force!
On a day when US stocks were closed due to the June holiday, European markets concluded broadly lower: The Europe Stoxx 50 index fell nearly 0.6%, Germany’s DAX30 dipped by 0.2%, and France’s CAC40 dropped by 0.7%, with only the UK’s FTSE 100 managing a slight increase of 0.1%. Both oil and gold experienced minor declines, with the market’s eyes focused on the Bank of England's rate decision happening today. Taiwan's night trading session ended slightly higher by 9 points.
Yesterday, Taiwan's stock market surged by more than 500 points at one point during the session, eventually closing up by 452 points, a gain of approximately 2.0%, and smoothly breaking through the major threshold of 23,000 points to close at 23,209 points. Though this spike might seem favorable as it sets a new historical high, not all investors welcomed such a sharp increase. The day’s gains were heavily concentrated in just four major companies: TSMC (2330-TW), Foxconn (2317-TW), MediaTek (2454-TW), and Quanta (2382-TW), which together contributed nearly all of the day’s increase, while the majority of stocks opened high but trended downwards, with the OTC index even closing slightly lower.
From my near 30 years of experience in the Taiwan stock market, this kind of sharp spike often does not bode well for bullish investors. Technically, this might lead to a scenario known as 'rising to stop rising', especially since yesterday marked the settlement of Taiwan's index futures and involved significant trading volume. This may indicate that there might not be much room left at the top for the short term.
However, this does not necessarily signify a shift to a bearish market. Instead, the index has left considerable room for the rise of other stocks that have not yet had their rally. Shipping stocks are still my top recommendation, particularly the container trio, because when electronics-heavy index pulls back, non-electronics stocks tend to rise. Considering yesterday's continued rise in the Shanghai container index’s Europe line to new record highs, we advise investors to continue buying on dips. Our recent transactions include buying Evergreen Marine (2603-TW) at NT$188 and selling at NT$200.5, and buying Wan Hai (2615-TW) at NT$89 and selling at NT$90.
Then, we come to biotech stocks. As I’ve predicted, with electronic stocks likely beginning to pull back, the best candidates to take up the mantle are biotech stocks. The ongoing healthcare and medical care exhibition in Nangang, the upcoming Asia Biotech Expo next July, and recent approvals in domestic regenerative medicine legislation are points to watch. The resurgence of COVID-19 cases also plays into this narrative. Recently, Quanta (2382-TW) surged to hit the trading limit after announcing at the early June computer expo that it was stepping into AI biotechnology with its partner Chang Jia Intelligent (6841-TW), which I recommended at around NT$82 and which closed yesterday at NT$114.5, a 40% increase. Other biotech stocks seeing strong performance include ShunMedicine (6535-TW), which continues to set historical highs, and Yuwei (4153-TW), which has seen consecutive limit-ups and is part of the JiaShiDa Group.
As investment becomes more challenging with capital concentrated in a few tech stocks, investors should avoid blindly chasing highs and adopt a strategy of buying on dips rather than surges. For stock picks, consider tuning into my free member videos for guidance.
For further investment tips and how to stay ahead with the "Taiwan Stock Market Strategy," watch my free membership videos and consider reaching out with any questions or for assistance in joining.
As investing becomes more complex, any issues with stock holding or operations can be addressed by joining my LINE at: https://lin.ee/5fbMyC2.
Catch the latest updates on our YouTube channel for better quality viewing.
Click the banner below to inquire about stock health checks or membership, and a dedicated representative will assist you.
With the Taiwan Stock Market Strategy, master the global market trends by following our expert guidance for steady and secure investment moves. Hotline for Taiwan Stock Market Strategy: 02-2653-8299.
Source: Analyst Ding Tai Qiu / Hendra Investment Consulting
The securities recommendations provided by our company do not have any inappropriate financial interests. Past performance does not guarantee future profits. Investors should make independent judgments, carefully assess, and bear the investment risks themselves.
Yesterday, Taiwan's stock market surged by more than 500 points at one point during the session, eventually closing up by 452 points, a gain of approximately 2.0%, and smoothly breaking through the major threshold of 23,000 points to close at 23,209 points. Though this spike might seem favorable as it sets a new historical high, not all investors welcomed such a sharp increase. The day’s gains were heavily concentrated in just four major companies: TSMC (2330-TW), Foxconn (2317-TW), MediaTek (2454-TW), and Quanta (2382-TW), which together contributed nearly all of the day’s increase, while the majority of stocks opened high but trended downwards, with the OTC index even closing slightly lower.
From my near 30 years of experience in the Taiwan stock market, this kind of sharp spike often does not bode well for bullish investors. Technically, this might lead to a scenario known as 'rising to stop rising', especially since yesterday marked the settlement of Taiwan's index futures and involved significant trading volume. This may indicate that there might not be much room left at the top for the short term.
However, this does not necessarily signify a shift to a bearish market. Instead, the index has left considerable room for the rise of other stocks that have not yet had their rally. Shipping stocks are still my top recommendation, particularly the container trio, because when electronics-heavy index pulls back, non-electronics stocks tend to rise. Considering yesterday's continued rise in the Shanghai container index’s Europe line to new record highs, we advise investors to continue buying on dips. Our recent transactions include buying Evergreen Marine (2603-TW) at NT$188 and selling at NT$200.5, and buying Wan Hai (2615-TW) at NT$89 and selling at NT$90.
Then, we come to biotech stocks. As I’ve predicted, with electronic stocks likely beginning to pull back, the best candidates to take up the mantle are biotech stocks. The ongoing healthcare and medical care exhibition in Nangang, the upcoming Asia Biotech Expo next July, and recent approvals in domestic regenerative medicine legislation are points to watch. The resurgence of COVID-19 cases also plays into this narrative. Recently, Quanta (2382-TW) surged to hit the trading limit after announcing at the early June computer expo that it was stepping into AI biotechnology with its partner Chang Jia Intelligent (6841-TW), which I recommended at around NT$82 and which closed yesterday at NT$114.5, a 40% increase. Other biotech stocks seeing strong performance include ShunMedicine (6535-TW), which continues to set historical highs, and Yuwei (4153-TW), which has seen consecutive limit-ups and is part of the JiaShiDa Group.
As investment becomes more challenging with capital concentrated in a few tech stocks, investors should avoid blindly chasing highs and adopt a strategy of buying on dips rather than surges. For stock picks, consider tuning into my free member videos for guidance.
For further investment tips and how to stay ahead with the "Taiwan Stock Market Strategy," watch my free membership videos and consider reaching out with any questions or for assistance in joining.
As investing becomes more complex, any issues with stock holding or operations can be addressed by joining my LINE at: https://lin.ee/5fbMyC2.
Catch the latest updates on our YouTube channel for better quality viewing.
Click the banner below to inquire about stock health checks or membership, and a dedicated representative will assist you.
With the Taiwan Stock Market Strategy, master the global market trends by following our expert guidance for steady and secure investment moves. Hotline for Taiwan Stock Market Strategy: 02-2653-8299.
Source: Analyst Ding Tai Qiu / Hendra Investment Consulting
The securities recommendations provided by our company do not have any inappropriate financial interests. Past performance does not guarantee future profits. Investors should make independent judgments, carefully assess, and bear the investment risks themselves.
Last edited at：2024/12/16
#TSMC#MediaTek Inc.#Evergreen Marine Corporation#Foxconn