By: Jeffrey Wu and Frances Huang
Taipei, March 7 (CNA) A U.S. brokerage has cut a target of the benchmark weighted index on the Taiwan Stock Exchange or the Taiex to 12,000 points for this year, citing concerns over the economic impact resulting from a spread of the novel coronavirus (COVID-19).
In a recent research note, the American securities house said as an exports-oriented economy, Taiwan is expected to feel the pinch resulting from the impact from the virus contagion worldwide which could hurt global demand.
As a result, the brokerage has lowered its target for the Taiex for 2020 by 500 points from its previous estimate to 12,000, while it has also lowered projected earnings by Taiwanese firms listed on the equity market by 3 percent for this year.
Amid the rising escalating scare over the virus spread, the Taiex fell 202.93 points or 1.77 percent in February as foreign institutional investors registered a net sell of about NT$130 billion (US$4.33 billion) in the month. [FULL STORY]