Investor Index Hit New Low
Tumbling US stock prices have dragged down worldwide markets, including Taiwan's. According to a newly-released survey, the sentiment index of local investors has now reached its lowest point since the beginning of the global financial crisis.
After opening today, the index fell 146 points as investor confidence has fallen dramatically. A survey conducted by Shih Hsin University found that investor's sentiment index fell from 51.49 last December to just 2.56 in June of this year.This is a decline of 48.9 points, indicating a pessimistic attitude and the lowest level since the global financial crisis,indicating that investor sentiment is turning negative.
With investors holding a negative view, many are predicting the stock market could be volatile in the second half.The survey also found that 60% of investors thought the market would be influenced by foreign investors and international stock markets.This includes the signing of ECFA, and the European credit crisis,indicating that if the international situation cannot be stabilized it could be key to affecting investor sentiment.
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