Taiwan’s stock market is not being affected by the upcoming local elections this Saturday. That was the word from the Financial Supervisory Commission (FSC) Chairman William Tseng on Tuesday. The 9-in-1 elections are the biggest local elections in Taiwan’s history.
Tseng said that the fundamentals on the market are good and won’t be affected by the election.
"There is no election effect in Taiwan. There are just the fundamentals. The profit of listed companies is NT$1.3 trillion which is 20% more than last year. At the right time, you’ll see the effect of the fundamentals. Elections last only a short moment so there should be no such thing as an election effect."
He said investors have a sense of uncertainty before the elections, but after the elections are over, it’s the fundamentals that will be reflected on the market.
Asian currencies are depreciating and China has cut its interest rates. Tseng believes these may have a slightly bullish effect on Taiwan’s stocks. He also said the FSC would find measures to deal with the growing influence of South Korea and Singapore.