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TAIEX investors' confidence level falls to lowest ever: J.P. Morgan

Taiwan investors' confidence has fallen to a new low due to various negative factors, said J.P. Morgan Asset Management yesterday.

The Taiwan Investors' Index compiled by the firm on a quarterly basis fell to 82.7 in October, the second lowest ever. The figure represented the third quarterly decline in a row and was slightly above 81.8 posted in January 2009, during the height of the global financial meltdown.

Investors' confidence level for the TAIEX, the overall investment climate and Taiwan's economy fell to -9.7, -6.4 and -5.5, respectively, all their lowest ever, J.P. Morgan said.

The index hit 112.3 back in February, the highest thus far in 2012. The figure since then went on a downward trend on investor pessimism over various negative developments including the European debt crisis, a rise in gasoline and electricity prices, and suspension of a monthly minimum wage hike.

“Investors are extremely diffident about the current investment climate,” said Chiu Liang-shih, executive director of J.P. Morgan. “Their pessimism is reflected in the recent stock trade volume reduction, which has caused the TAIEX to fall below its 12-month moving average.”

Yet a rise in investors confidence was shown in three categories, namely Taiwan's political climate, the global economy, and likelihood one's investment portfolio will increase in value over the next six months.

People are more confident about politics probably because members of both ruling and opposition parties have engaged in cross-strait exchanges recently, Chiu said.

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