MOF predicts 18-month high for TAIEX

The Ministry of Finance yesterday forecast that stock transaction tax revenues for last month could reach NT$10 billion, an 18-month record high, with the nation's stock market showing a marked recovery over the past few weeks, following months of sluggishness.

Statistics released yesterday by the ministry indicated that since the TAIEX moved above 5,400 points, single-day stock trading value has reached as high as NT$190 billion. The average daily trading value of the Taiwan Stock Exchange Corp last month was NT$128.4 billion.

President Chen Shui-bian's (陳水扁) announcement in early July that the government will scrap a US$3 billion cap on a single qualified foreign institutional investor added stimulus to the recovery.

A market analyst with the Jardine Fleming Investment Consulting Co said yesterday that the stock market is expected to go up in the second half of this year, judging from the overall economic prospects and abundant capital.

The Council for Economic Planning and Development's vice chairman, Ho Mei-yueh (何美玥), said yesterday that Taiwan's economy is rebounding and that GDP growth is expected to be at least 3 percent for this year.