Mon, Oct 25, 2010 - Page 12 News List

Stocks expected to stage range-bound consolidation

By Kevin Chen  /  Staff reporter

“Based on past experience since 2000, the market has an 80 percent chance of rising in the six months after the local government elections,” Kuo Chien-cheng (郭建成), a fund manager at Taishin Investment, said in a client note on Friday.

The analysis uses the market performances in the 2001, 2005 and 2009 local government elections as well as 2002 and 2006 Taipei and Kaohsiung mayoral elections.

It showed that the market has an 80 percent chance of rising one week before the local government elections, an 80 percent chance of rising one month after the elections, a 60 percent chance of rising three months after the elections and 80 percent, six months after the elections.

Kuo said he was bullish about the prospects of local bourse during the medium term and maintained a positive view on China-related stocks in his portfolio.

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