Taipei--Investor confidence in the stock market in the second quarter is the highest it has been in two years after the Taiex breached the 10,000-point mark, according to a survey conducted by J.P. Morgan Asset Management.
The survey's equity investment index for the April-June period was 88.6, the highest since it hit 106.4 in the second quarter of 2015, the market advisory firm said. The second quarter figure was also up from the first quarter's 80.7.
The weighted index on the Taiwan Stock Exchange, the Taiex, closed above the 10,000-point level on May 11 for the first time in 17 years before falling back.
But it returned above that level on May 23 and has stayed there since, reinforcing the faith investors have in the market, J.P. Morgan said.
On Friday, the Taiex closed at 10,156.73 as investors shrugged off concerns over high valuations of many large-cap high-tech stocks.
The six factors that make up the index all trended higher in the second quarter as investor confidence was lifted by solid gains posted by local stocks. The Taiex has gained 9.76 percent since the beginning of this year.
The sub-index for the weighted index movement rose to 91.9 in the second quarter from 77.5 in the first quarter, the sub-index for Taiwan's economy grew to 80.5 from 68.4, and the sub-index for Taiwan's political climate and cross-strait conditions rose to 67.8 from 57.8, the survey showed.
The sub-index for the local investment environment rose to 82.2 in the second quarter from 73.1 a quarter earlier, the sub-index for the global economy edged up half a point to 102.5, and the sub-index for possible gains in respondents' stock holdings over the next six months climbed to 107.0 from 105.4.
A sub-index above 100 signals optimism.
Meanwhile, J.P. Morgan said that since Taiwan's property market has been relatively weak for more than two years, the market may finally be stabilizing as the domestic economy recovers.
Some 22.3 percent of respondents in the survey expected that home prices would edge slightly higher in the future, up 4.3 percentage points from a quarter earlier, J.P. Morgan said.
Source: Focus Taiwan News Channel