Greece debt affects local market: analysts
Greece’s unresolved debt crisis has wide ramifications on stock markets around the globe, and as a consequence, Taiwan’s stock market will experience downward adjustment for some time, predicted foreign analysts.
Greece was supposed to repay its first loan installment of the month — 300 million euros — on June 5. With rising risk of default, stock markets saw large swings in the past week, and in Taiwan, after 5-day moving average plummeted 360.94 points, the stock market closed at 9,340.13 on Friday.
While the debt crisis has been partially relieved after Greece pledged to repay all four loan installments for June (1.6 billion euros in total) borrowed from the International Monetary Fund at the end of the month, investors are still somewhat reserved on the country’s ability to stay afloat.
The uncertainty casts a shadow on short-term stock market performance around the world, according to a U.S.-based investment institution.
An analyst from a Europebased institutional investor said Greece’s debt problems have adverse impacts around the world, and that if stock markets in the U.S. continue to sag, Taiwan’s stock market may underperform.
Nevertheless, some foreign securities dealers remain upbeat about the performance in the latter half of the year. With growing profitability for Taiwanese companies, the approach of peak season for electronics companies, and the launch of quantitative easing in Europe, which infuses markets with money, dealers expect the Taiwan stock index will reclaim the 10,000-point mark down the road.