TAIPEI (TVBS News) — SinoPac Securities Investment Service Corporation (SinoPac Inv. Service) released a report on the Taiwanese stock market on Friday (Dec. 1), showcasing an impressive growth streak with Taiwan's stocks, which surged over 44% since 2020 through the end of November this year.
This notable growth outpaced South Korea's market, which saw a 15% increase and even surpassed the US S&P 500's gain of 40%.
According to the technical analysis of the report, Taiwan's stocks are poised to set a new high for the year. The index has successfully breached the 16,800-point mark, considered a critical threshold between bullish and bearish trends.
With Taiwan's presidential election on the horizon, SinoPac Inv. Service points out that political performance and a thriving stock market are often viewed as indicators of the incumbent's record.
Analysis of the stock market performance around the past three presidential elections — rising by 4.42% in December 2019, 0.21% in December 2015, and 2.43% in December 2011 — tends to reflect an upward trend before the elections.
In light of the domestic stock market's current momentum and what is described as a "multiple bottom pattern," investment strategists at SinoPac are suggesting a "bullish-bias" investment approach to capitalize on the market's upward swing.