Tai­wanese con­fi­dence in eq­uity mar­ket down sharply, claims sur­vey

The China Post - - FRONT PAGE -

Tai­wanese in­vestors’ con­fi­dence in the eq­uity mar­ket fell sharply amid lin­ger­ing con­cerns over the eco­nomic cli­mate at home and abroad and due to a shock re­sult­ing from re­cent volatil­ity in the global fi­nan­cial mar­kets, ac­cord­ing to a sur­vey re­leased by J.P. Mor­gan As­set Man­age­ment.

The sur­vey showed that the eq­uity in­vest­ment in­dex in Tai­wan fell 24.7 points from a quar­ter ear­lier to 81.7 in the third quar­ter, the low­est level since J.P Mor­gan As­set Man­age­ment started such a sur­vey in July 2004.

The weighted in­dex on the Tai­wan Stock Ex­change hit a 2015 high of 9,973.12 points on April 27. But since then, the lo­cal main board has started trend­ing lower amid wor­ries over the debt prob­lems in the eu­ro­zone and fears of an in­ter­est hike by the U.S. Fed­eral Re­serve.

A steep fall in the Chi­nese yuan and tur­moil in the global eq­uity mar­kets, in par­tic­u­lar the China mar­ket, sent the lo­cal weighted in­dex into a tail­spin.

Since April 27, the weighted in­dex on the lo­cal main board has shed al­most 2,000 points or more than 19 per­cent. Since the be­gin­ning of this year, the in­dex has fallen nearly 14 per­cent to close at 8,019.18 points on Fri­day.

In ad­di­tion to cau­tious sen­ti­ment to­ward the econ­omy, J.P. Mor­gan As­set Man­age­ment cited con­cerns over po­lit­i­cal un­cer­tainty ahead of the up­com­ing pres­i­den­tial elec­tion sched­uled for Jan­uary 2016.

The sub- in­dex for the sen­ti­ment to­ward the cap­i­tal mar­ket in Tai­wan fell 29.7 points from a quar­ter ear­lier, the sub- in­dex for the lo­cal eco­nomic out­look dropped 28.6 points and the sub-in­dex for pos­si­ble gains re­sult­ing from in­vest­ments over the next six months de­clined 24.1 points, the sur­vey showed.

The sur­vey in­di­cated that the sub-in­dex for the global eco­nomic out­look fell 23.8 points from a quar­ter ear­lier, the sub-in­dex for the out­look of the lo­cal bourse dropped 22.6 per­cent, and the subindex for the lo­cal po­lit­i­cal sit­u­a­tion and cross strait re­la­tions shed 19.8 points.

Ac­cord­ing to the sur­vey, 47 per­cent of Tai­wanese in­vestors suf­fered losses in their in­vest­ments in the lo­cal eq­uity mar­ket over the past six months, the worse per­for­mance in two years.

The sur­vey was con­ducted be­tween July 21 and Aug. 3 and col­lected a to­tal of 1,069 valid ques­tion­naires with a con­fi­dence level of 95 per­cent and a mar­gin of er­ror of 3 per­cent­age points.

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