Deutsche Bank predicts foreign investors will continue to boost purchases of Taiwanese stocks in 2006

January 24, 2006

Deutsche Bank predicts that foreign investors will continue will continue their buying spree on the Taiwan Stock Exchange in 2006 due to the strong market fundamentals of Taiwan's technology stocks. It also cites profit growth among Taiwanese enterprises and reduced political risks as some of the main reasons for its forecast.

In 2005, foreign investors posted a buying surplus of USD 20.5 billion. This is a major increase from the USD 9.8 billion surplus they racked up in 2004. Foreign investors had boosted their share of the Taiex to a record-high 31.9% as of the first week of 2006.

Electronics and telecommunications stocks were the two main buying targets of foreign investors on the TAIEX in 2005.

(Central News Agency)

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