Taiwan Strategy:What BREXIT means for the TAIEX

High volatility for capital markets, weaker NT$.

    As the full impact from the UK exiting the EU plays out, capital marketvolatility and more end-demand uncertainty (especially in Europe) mayhamper upside to the TAIEX. A weaker NT$ (stronger US$), high US$exposure for many Taiwan companies, high dividend yields (sustainable), andgrowth should help offset the market uncertainty and lead to better buyingopportunities for several stocks.

    Prefer growth stocks with high dividend yields (andreasonable valuations).

    Tech: Positive impact from strong US$/weak NT$ (stronger Yen also positivefor industrial automation names)