Under the pressure of capital outflow, the Taiwan dollar depreciated rapidly. The market is worried that foreign capital will withdraw funds from Taiwan stocks and remit funds. However, even if foreign capital sells excessively in Taiwan stocks, there are still some stocks that they must buy and are worth investing in. people tracking.
【arts/ Sun Jiaming】
Through the distribution of foreign stocks in the past 20 trading days (March 18 to April 18), we can try to interpret how foreign capital rotates in Taiwan stocks and bring out operational ideas.
As shown in Table 1, 4 of the listed stocks are financial stocks, namely: CITIC Gold (2891), Cathay Gold (2882), Mega Gold (2886), Yushan Gold (2884), other stocks are: Wiwynn (6669) of Data Center Solutions, Sinosteel (2002) of steel stocks, EVA Air (2618) of aviation stocks, E-paper Yuan Tai (8069), Dacheng Steel (2027) of stainless steel, and Chunghwa Electric (2412) of defensive nature.
Among them, financial stocks are mainly benefited from the trend of rising interest rates, which is expected to drive the expansion of interest rate spreads. Among the stocks listed, CITIC Gold, Mega Gold and Yushan Gold are all gold holdings with banks as their main growth engines, thus attracting the market. Pay attention, Cathay Pacific Gold is an important stock in domestic gold holdings, and it also attracts market attention. However, financial stocks should not be too high when operating, and can operate along the medium-term moving average when pulling back.
Foreign investment into niche themes
Except for the defensive stock CLP, the listed stocks all have their fundamental themes. In this aspect, in addition to reflecting the operation direction of stock selection rather than market selection, it can also be seen that foreign capital flows to niche themes and values. propensity to invest. Among them, Wiwynn benefited from the clear trend of cloud computing, strong demand for data center customers, and the launch of new platforms of Eagle stream and Genoa in the second half of 2022. The gradual improvement of the matching material situation will drive the follow-up operations to surge upwards, thus attracting the attention of foreign investors .
Yuantai’s electronic material production capacity will continue to increase this year and next year, and the supply of electronic paper will be in short supply until 2023, and it is expected that the growth rate of revenue and profit in 2022 and 2023 will be greater than 40%, which is expected to drive the evaluation to increase. Sinosteel continued to increase its domestic sales price in May. Under the unresolved war between Russia and Ukraine, the supply chain still needs a certain period of time to recover, so the supply of raw materials will continue to be tight, which will help its profit performance.
In the part of selling the top 10 stocks (excluding ETF targets), it can be found that there are 5 grades of semiconductor stocks, including MediaTek (2454), TSMC (2330), UMC (2303), Novatek (3034), Realtek (2379), as well as computer-related Quanta (2382), Asus (2357), and ABF’s Xinxing (3037), mainly because foreign capital began to adjust growth stocks with high price-earnings ratios due to monetary tightening. Evergreen (2603) and Yang Ming (2609) of the container group are mainly because the market expects that under the “coexistence with the epidemic”, the problem of supply chain congestion will be improved, and the freight rate will be suppressed, which is not conducive to their profit performance, which in turn limits their share price performance. , foreign capital therefore has an adjustment action.
Deep down growth stocks can pay attention to
On the whole, foreign capital trends are indeed shifting towards targets that benefit from interest rate hikes, defensive and niche themes, and on the other hand, adjust growth targets. However, this may indicate that the stock prices of some individual stocks have risen sharply in the short term. Don’t chase the highs too much. On the contrary, growth stocks mostly have fundamentals. After the evaluation is adjusted, they can be pulled back to wait for short-term operations. After reading the movements of foreign capital in Taiwan stocks, let’s take a look at the fundamentals of Taiwan’s benchmark stock, TSMC, and what foreign capital thinks about it.
[Forthefullcontentpleasereferto”ExtraordinaryBusinessWeekly”2022/4/252No.1298]