Foreign brokerage sharply cuts Taiex target after Q2 GDP data

Want China Times
Date: 2015-08-02

Disappointed by Taiwan’s lower-than-expected GDP growth for the second quarter of this

Investors at a trading center in Taipei, July 27. (Photo/Hung Hsi-lung)

Investors at a trading center in Taipei, July 27. (Photo/Hung Hsi-lung)

year, a European brokerage has sharply cut its target for the Taiwan Stock Exchange Capitalization Weighted Stock Index (Taiex) on the main board.

The brokerage, which asked not to be named, has trimmed its target for the weighted index to 9,180 points from an earlier forecast of 9,900 points, citing concerns over outbound shipments of the bellwether electronics sector.

On Friday, the Directorate General of Budget, Accounting and Statistics (DGBAS) reported that Taiwan’s GDP rose only 0.64%, lagging far behind the DGBAS’s earlier estimate of a 3.05%.

The government agency said that the disappointing second quarter GDP growth largely resulted from worse-than-expected exports at a time when global demand remained weak. In the April-June period, Taiwan’s merchandise and service exports fell 1.30% from a year earlier, compared with an earlier forecast of 3.27% growth.     [FULL  STORY]

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