TAIPEI — As the Taiwan stock market experienced fluctuations on Monday, analyst Guo Zherong highlighted opportunities amid the broader market downturn, encouraging investors to take advantage of price pullbacks.
According to Guo, shares of Shin Nihon (3376) initially rose during the morning session but slipped later in the day. Other tech-related stocks, including Compal (2324), MSI (2377), Wistron (3231), and Quanta (2382), also saw declines — largely influenced by overall market sentiment rather than company fundamentals.
Guo described the downward movement as “irrational,” viewing it as a strategic moment to “buy on dips,” especially for Shin Nihon, which he believes still has considerable growth potential.
In contrast, Cathay Pacific’s 20-year U.S. Treasury Bond ETF (00687B) rose despite the market slump. Guo reiterated that U.S. Treasury bonds can act as a financial shield during periods of uncertainty. He added that with the U.S. Federal Reserve expected to cut interest rates in the latter half of the year, the long-term outlook for U.S. Treasury bonds remains optimistic.
Guo also noted recent market volatility, attributing it to fluctuations in margin financing and unstable chip performance. However, he pointed out that foreign investors have begun covering their short positions, indicating the possibility of a rebound-driven short squeeze in Taiwan’s market.
Looking ahead, Guo emphasized the significance of the upcoming earnings reports from major U.S. firms such as Tesla and Google, as their results will likely influence the supply chains connected to Taiwanese manufacturers. He believes that unless corporate earnings deliver significantly negative surprises, small- and mid-cap stocks in Taiwan still have room to perform.
He concluded by urging investors to remain watchful and take advantage of market corrections, noting that well-timed investments could still lead to gains in the coming months.
