Reported 12 months ago
Despite a 0.77% decline in the Taiwan stock market on July 2, financial stocks, driven by merger and acquisition themes and anticipated profits in June, closed in the green against the trend. The financial index continued its upward trend, gaining 4.2 points or 0.2%, marking three consecutive days of increase with a total rise of 1.08% during this period. Several financial stocks, excluding preferred shares, such as Cathay Financial Holding, First Financial Holding, Taiwan Business Bank, and so on, ended the day with gains. Stocks like Fubon Financial Holding, Mega Financial Holdings, and CTBC Financial Holding not only show strong profit performance but also exhibit merger and acquisition capabilities. With funds flowing in, these financial stocks are expected to maintain their upward momentum. Observing technical indicators, the financial index closed at 2,022.71 points on July 2, staying above various moving averages like the weekly, monthly, and quarterly, presenting a bullish trend, with a potential challenge to the intraday high of 2,042.23 points on June 25. The favorable profit outlook for financial stocks in the first three quarters of this year is supported by factors like SWAP transactions, realized stock profits, and the devaluation of the New Taiwan Dollar. Many financial institutions have announced higher dividend payouts, with some offering cash dividend yields exceeding 5%, attracting more investments into the sector. The peak dividend season for financial stocks is expected to last from June to August, indicating a favorable earnings outlook for the sector.
Source: YAHOO