Public confidence about the domestic economy and property market improved this month, but remained in negative territory as major barometers stalled, a survey by Cathay Financial Holding Co (國泰金控) showed yesterday.
About 32 percent of respondents expect the economic landscape to turn worse in the coming six months, while 26.7 percent expect an improvement after the National Development Council’s latest business indicator was “yellow-blue,” or a transition signal, in July, the survey said.
More than 70 percent of the people believe it is not a good time to buy a house, while 59.5 percent believe it is not wise to sell either, the survey showed.
The figures represent a decrease in those with misgivings about property transactions, but still suggest a sluggish market where sellers outnumber buyers.
On the stock exchange, 24.5 percent said they plan to trim their investments, while 20.9 percent intend to increase them now that the TAIEX have rallied above the 10,500-point mark, increasing correction pressures. Nearly 50 percent said they would maintain their exising investments.
The findings also indicated an enhanced risk appetite as evidenced by daily transactions of more than NT$100 billion (US$3.32 billion) on the Taiwan Stock Exchange.
Cathay Financial attributed the uptick in sentiment to the launch of new iPhone models that could benefit the earnings of the local firms in Apple Inc’s supply chain.
However, geopolitical tensions between North Korea and the US might weigh on global bourses, it said.
The price of gold has risen 17 percent so far this year partly due to geopolitical uncertainty, it said.
A majority of respondents, 53.6 percent, expects the price of gold to climb another 5 percent, while 12 percent are looking at an increase of more than 10 percent, the survey said.
A minority of 5 percent expects the price of gold to fall.
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