Public confidence staged a V-shaped rebound this month after major global economic bellwethers stopped declining and the local bourse resumed active trading, a survey by Cathay Financial Holdings Co (國泰金控) showed yesterday.
The pickup in sentiment is especially evident in terms of investment outlook as a sizable number of respondents, 26.8 percent, expect the TAIEX to rise in the coming six months, while 35.8 percent hold the opposite view, the survey said.
The discrepancy narrowed to 9 percent this month, from 36.5 percent last month, after the main index rallied 7.7 percent in the past three weeks, outperforming the global stock index’s 1.9 percent rise, Cathay Financial said.
The sentiment sub-index climbed to its highest level since April, when talks of a capital gains tax on stock investments started to sap the local bourse, the survey said.
Meanwhile, 27 percent of the respondents were upbeat about the nation’s economic outlook, compared with 40 percent with pessimistic, the survey found.
The finding was a marked improvement from last month when respondents who were bearish outnumbered their optimistic peers by more than 40 percent, Cathay Financial said.
“A stabilizing eurozone accounted for the shift in sentiment,” the nation’s largest financial services provider said.
Consequently, about 13.6 percent and 16.4 percent of the respondents voiced willingness to increase spending for big-ticket purchases in the next six months, the survey indicated.
Still, a large number of respondents, 70.2 percent, expect consumer prices to rise over the next six months, with the size of increase ranging from 3 to 6 percent, the survey said.