TAIPEI - The outcome of the French presidential election Sunday will likely have only limited impact on the local TAIEX bourse, analysts said that day.
Despite wide expectations that French President Nicolas Sarkozy's Socialist rival, Francois Hollande, will win the second round runoff vote, the possible power shift in France will only have a limited impact on global stock markets, said Wu Wun-tong, chief investment officer of Capital Investment Trust Corp.
Wu also noted that the second half of the year is traditionally a strong season for electronics manufacturers. Market momentum is expected to pick up in June, which makes May a good buying point for investors, he said.
Echoing Wu's view, Yen Jung-hung, a fund manager with JPMorgan, said that despite Hollande's opposition to austerity policies, the ongoing European debt crisis will have limited impact on the local bourse.
Yen said the results of the European Central Bank's second Long-Term Refinancing Operation have been effective, which has helped boost stock markets around the world and have eased the strain on European banks.
He added that if Sarkozy wins a second term, the result will have an even more limited impact on the local bourse, since Sarkozy favors austerity measures, and the market focus will shift back to domestic issues such as increased electricity prices and the proposed capital gains tax.