Thu, Dec 31, 2009 - Page 12 News List

Investors upbeat on objectives

INFLUENTIAL FACTOR An optimism index showed that pan-blue investors were far more optimistic about their investment future than their pan-green counterparts

By Ted Yang  /  STAFF REPORTER

Amid the economic recovery, more domestic investors turned upbeat about achieving their investment goals within three months as the investor optimism index rose to 37.25 this month, up from 7.48 percent in June, a survey showed yesterday.

The Shih Hsin University survey, which polled 1,082 investors over the age of 18 by telephone between Dec. 10 and Dec. 20, said respondents were more confident about their short-term investments this month compared with the June poll.

Kuo Min-hua (郭敏華), an associate professor of finances at the university, said investors remained optimistic about short and long-term investments, with those hoping to make a profit within the next three months growing more optimistic.

“Political affiliation and income are the two most influential factors to differentiate investor sentiment,” Kuo said, adding that pan-blue respondents were far more optimistic than their pan-green counterparts.

The optimism index for pan-blue investors stood at 119.12 points, compared with negative 49.17 for pan-green investors.

The index for high-income investors was 94.44 points, compared with 15.39 for those with low income, the survey showed.

Kuo said investors with high income and higher education were more optimistic because the external economic environment doesn’t affect their lives as much as those with low wages and lower education.

Respondents became more optimistic about economic growth, employment opportunities and stock performances in the next three months, but were less optimistic about commodity prices, the survey showed.

Meanwhile, respondents said the TAIEX had “skyrocketed” this year despite a modest economic recovery, proving that the stock market does not reflect economic growth, the survey said.

Nearly 50 percent of respondents said the TAIEX would continue be affected by the global economic environment and foreign investment in the next couple of months, followed by investor confidence, the survey showed.

“Based on the survey, investors were more optimistic about the first quarter next year, but because of various uncertain factors, they are still relatively conservative about middle and long-term economic development next year,” Andy Liang (梁永煌), president of the Chinese-language weekly Business Today, said by telephone.

In addition, the survey found that a government-proposed economic pact with China had a negligible effect on investor sentiment, highlighting a wait-and-see attitude to cross-strait agreements.

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