Taipei-Investor confidence in the Taiwan stock market is at the highest level in two years as the main board remains above the 10,000-point mark, according to a survey released on Wednesday.
The survey by J.P. Morgan Asset Management showed that the equity confidence index in the fourth quarter of the year rose to 96.4 from 89.5 in the third quarter. Climbing for the third consecutive quarter, the index reached its highest level since the second quarter of 2015, when it stood at 106.4, the poll indicated.
The weighted index on the local main board ended above 10,000 points in mid-May for the first time in 17 years and maintained its momentum, holding above that level for more than 100 straight trading sessions.
On Wednesday, the weighted index ended up 0.06 percent at 10,713.55 points.
Against that background, J.P. Morgan said, it expects investor confidence to continue to climb, moving toward 100 points.
According to the survey, the sub-index for the movement of share prices rose 3.8 in the fourth quarter to 96.7.
The bellwether electronics sector has been leading the equity markets in Asia higher on the back of strong global demand for high-tech gadgets, J.P. Morgan Asset Management noted.
As a result, earnings in the region's high-tech industry have continued to trend higher, prompting investors to chase share prices, the asset management firm said.
With the domestic economy showing steady growth, the sub-index for economic fundamentals also rose 9.8 from a quarter earlier to 86.6, while the sub-indexes for Taiwan's investment environment and possible gains in respondents' stock holdings over the next six months also climbed 8.7 and 1.9, respectively, to 88.6 and 114.3.
The optimism toward the local economy coincided with a move by the government last week to raise its forecasts for Taiwan's economic growth for 2017 from 2.11 percent 2.58 percent, and for 2018 from 2.27 percent to 2.29 percent.
J.P. Morgan Asset Management said the sub-index for Taiwan's political environment and cross-strait ties rose by 19.0 from a quarter earlier to 81.1 in the fourth quarter.
However, investors appeared cautious about the global economy, with the sub-index for the world's economic climate for the fourth quarter dropping 1.6 from a quarter earlier to 111.0, according to the asset management firm.
In addition, the survey found 24.7 percent of respondents agreed that residential and commercial property prices in Taiwan will increase in the future.
Source: Focus Taiwan News Channel