Taiwan's stock market analysts are watching developments in the US stock market, as the business giants in the electronics and telecommunications sectors are about to announce their performances for the third quarter, according to an analysis by investment consultant Jardine Fleming Taiwan.
The analysis released yesterday indicates that the developments of the US stock market will have a greater effect on Taiwan's share prices than the fundamental elements of the domestic economy.
While the developments of the US-led military actions against the Taliban regime in Afghanistan are expected to trigger ups and downs in stock markets around the world, the third quarter reports of such big firms as Motorola, Intel, IBM, Microsoft and Yahoo will determine the index fluctuations.
The analysis suggests that investors observe the economic forecasts of leading enterprises in the wake of the outbreak of the warfare in Afghanistan.
Referring to the price shrinkage of electronics shares in Taiwan's stock market, the analysis says that electronics share prices were expected to bottom out in the short run. However, as a recovery of the sector might be delayed, a rebound of the share prices will be unlikely.
Meanwhile, statistics released by the Jih Sun Securities Co's (日盛證券) research department indicate that in the past three months, the weighted price index of the local stock market dropped by 1,246.49 points or 25.52 percent, from 4,883.43 points June 29 to 3,636.94 points Sept. 28.
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