Morgan Stanley Dean Witter raises weighting of Taiwan stocks
Taipei, Dec. 3, 2000 (CENS)--Morgan Stanley Dean Witter has increased the weighting of Taiwan stocks by six percentage points in its Asia-Pacific investment portfolios, according to the Chinese-language Economic Daily News.
MSDW's move came after its affiliate Morgan Stanley Capital International raised the market capitalization of Taiwan stocks in its widely tracked market indexes to 80% from the previous 65% at the end of November, the report said.
In addition to Taiwan, MSDW only raised the weightings of four other markets--South Korea, Singapore, Hong Kong and India, it added.
In a report on investment strategy for Asia-Pacific region in 2001, SDW also recommended foreign institutional investors to enlist seven Taiwan stocks as having the best potential in 2001.
They are United Microelectronics Corp., ,Delta Electronics, Compeq Manufacturing, Hon Hai Precision Industry, Taiwan Semiconductor Manufacturing Co., VIA Technologies, and Bank SinoPac.
MSDW also suggested foreign investors to start accumulating Taiwan stocks, because the price/earnings (P/E) ratios of local shares have slid to their 10-12 year lows, with some share prices even falling below their levels during the missile crisis in 1996 and the regional financial crisis in 1998. |
