Taiwan Stocks at Key Level; Apple May Determine If Gains Last
May 08 2017 - 11:13PM
Dow Jones News
By Kevin Kingsbury
It's not often that resistance lines last 20 years.
But that's been the case for Taiwan's benchmark stock index, and
the Taiex is about to see if the fifth time is the charm. Apple
Inc. (AAPL) could well prove key if success is finally achieved
this time around.
After topping out in early 1990 at 12495, the Taiex hasn't been
able to spend any more than a brief time above 10,000 points. That
includes just two days in 2015, when the index got to 10002 and
10014 intraday, according to data from FactSet.
On Tuesday morning, the Taiex briefly rose above the resistance
to reach 10001.94, though it quickly pared gains and was last up
0.1% at 9951.01. The index had been trading close to the key level
for nearly two months.
Meanwhile, the Taiex hasn't finished in five-figure territory
since 2000, topping out then at 10202.
Reaching this decades-long resistance level may finally put the
Taiex on pace for a serious retest of 1990's record high, but
whether that happens could depend on Apple's plans for the upcoming
iPhone.
Hopes surrounding the upcoming model, coming 10 years after the
company's initial handset, have helped stoke a 45% rise in Apple
shares in the past six months.
Stocks in Taiwan, where several key Apple iPhone manufacturers
and parts suppliers are listed, haven't risen quite as much. Still,
the Taiex is up 25% from a year earlier, making it among the
region's best performers.
Taiwan stocks, like Apple shares, stalled by mid-2015 as the
first-ever sales declines for the iPhone loomed. That was in part
the result of a lack of big improvements, though there is
speculation about some notable advances with the coming
release.
However, if ahead of the September release the wow factor in the
new iPhone just isn't there, Taiwan's stock market could see some
major correction, analysts have said.
Write to Kevin Kingsbury at kevin.kingsbury@wsj.com
(END) Dow Jones Newswires
May 08, 2017 22:58 ET (02:58 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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