Thu, Aug 30, 2007 - Page 12 News List

Investor sentiment drops to new low: poll

STAFF WRITER

Weighed down by the US subprime mortgage issue, Taiwanese investor sentiment plummeted to a new low this month, but investors were still upbeat on the prospects of the stock market over the next 12 months, a poll said.

Investor confidence plummeted to 6.67 points from 22.9 points in June, marking the lowest level since January, a survey released yesterday by the Chinese-language weekly Business Today and Shih Hsin University showed.

"This means investors lost hope of seeing the TAIEX reach the 10,000 point mark, after the market was hit by the US subprime problem," the poll said.

The TAIEX index dropped 84.23 points, or 0.97 percent, to close at 8,643.32 yesterday.

On July 25, the index had hit a fresh seven-year high of 9744.06 points on turnover of NT$284.71 billion, fueling hopes it would surpass 10,000 points.

Asked if investors would be able to reach their investment goals for the next three months, only 8.9 percent of respondents said they could do so with ease.

This accounted for the 50 percent drop in the index of investors' expectations for the next three months to 24.2 points, the survey said.

However, investors last month were still optimistic on their stock investment over the next 12 months.

The confidence index on the nation's economic growth grew 5.4 points this month.

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