TAIEX to see ‘Brexit’ drag, analysts say

TURNAROUND:Prior to the UK’s vote, foreign funds increased holdings in local shares by NT$42.79bn, in anticipation of the high-sales season for upstream technology products

Taipei Times
Date: Jun 27, 2016
By: Crystal Hsu / Staff reporter

The TAIEX is set to slump further today — after shedding 2.3 percent on Friday — as it reflects nosedives in Wall Street and European bourses following Britain’s vote to leave the EU, analysts said yesterday.

The dividend issuances of major technology and financial companies would also put pressure on their market values and the main board, the analysts said.

“The local bourse is bound to open lower on Monday as ‘Brexit’-linked uncertainty continues to unnerve investors and drive changes in fund allocation strategies,” state-run Hua Nan Securities Co (華南永昌投顧) chairman David Chu (儲祥生) said by telephone.

Wall Street tumbled 3.39 percent on Friday after the pan-European STOXX 600 Index closed down about 7 percent, with France’s CAC 40 Index plummeting about 8 percent, Germany’s DAX Index dropping 6.8 percent and Italy’s FTSE MIB and Spain’s IBEX 35 falling more than 12 percent.     [FULL  STORY]

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