TAIPEI (CNA) — A survey of the investment strategies among five major securities houses in Taiwan showed Saturday that their top picks for September are among the companies that are devoted to developing 5G technology.
The survey, which has compiled the survey results among Capital Securities, Fubon Securities, President Securities, KGI Securities and Cathay Securities, found that 5G concept stocks would be the top picks for them, followed by Apple concept stocks and auto stocks.
As one of the analysts who favors 5G-related stocks, Li Fang-kuo (黎方國), chairman of Uni-President Investment Consulting, said he recommended Taiwanese suppliers to Chinese smartphone brand Huawei Technologies Co., which has been gearing up to grasp a large share of the 5G market.
Among the 5G concept stocks, the local media reported recently that Hsinchu-based integrated circuit designer MediaTek Inc. is expected to receive orders from Huawei to supply 5G chips in the first quarter of next year, and the new business is expected to serve as a driver to the Taiwanese firm’s shipment growth for 2020.
Li said that while trade tension between the United States and China has sent ripples through the global financial markets, investors had better take a close look at those stocks that have a niche market, such as 5G technology.
Li said he also has hopes that the launch of the next-generation iPhones will allow Apple suppliers in Taiwan to enjoy growing sales momentum for the rest of this year.
Earlier this week, Apple issued an invitation to the press to a “special event” Sept. 10. While the U.S. consumer electronics giant did not release more details about the event, the market has widely anticipated that the company will unveil three new iPhone models.
Among the major suppliers in Taiwan for iPhones are assembler Hon Hai Precision Industry Co. and smartphone camera lens maker Largan Precision Co. Apple accounts for more than 40 percent of the two companies’ total sales a year, according to market estimates.
In addition to 5G and iPhone-related stocks, Capital Marathon Fund’s Shen Wan-chun (沈萬鈞) said he also favored stocks related to the development of electric cars at a time when more and more consumers are putting emphasis on an eco-friendly environment.
Shen said he also has faith in companies that have devoted themselves to artificial intelligence and the Internet of Things.
In August, the weighted index on the Taiwan Stock Exchange, or Taiex, fell 205.76 points, or 1.90 percent, from July, as the U.S. and China increased trade tariffs on each other’s goods with no signs that the trade dispute will be resolved any time soon. On Friday, the Taiex ended at 10,618.05 points.
Li said the U.S. Federal Reserve is likely to cut its key interest rates again in a policymaking meeting in September after a reduction in July, to assuage the impact resulting from the trade war, so that the stock market could ride the wave of rising liquidity in the month.
The debut of the new iPhones and a back-to-school buying spree, Li said, is expected to lend more support to the local main board next month.
The analyst said the Taiex could move between 10,460 and 10,920 points during the month.
By Han Ting-ting and Frances Huang