UMC (2303)closed @38.10 unc vol 45,493,840 3rd most active
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August 27 net purchase 16,471,000 shares
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TAIWAN WEIGHTED closed @ 4368.38 -16.17 (-0.37%)
Day's Range :4340.65 - 4406.97
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Taiwan's Leading Economic Indicator shows another uptick, signalling a slow bottoming out. Taiwan's LEI rose 0.1% month on month in June to 92.80, following a 0.4% month on month rise in June (also a 92.80 reading). What are the implications? One, this was driven by improvement in some three of the seven components of the LEI: M1b money supply (NT$4.33 billion daily average during July, up from NT4.29 billion in June); Wholesale Price Index (a reading of 97.27 in July, up 0.20% or up 0.27% seasonally adjusted, from 97.08 in June); new manufacturing orders and average number of manufacturing hours worked. Two, month on month improvement is expected during peak seasonal demand during the third quarter. Three, Taiwan is pulling out of the worst of its export contraction. Taiwan's LEI bottoms out some three to four months ahead of a pick up in export orders, with no confirmation of a sustained turnaround in the latter. Export orders in year on year growth terms will likely show improvement in October 2001 following record high export orders of US$14 billion recorded in September 2000. Exports in value terms will likely showing improvement in November 2001, following record exports of US$13.6 billion recorded in October 2000. The Taiwan economy will continue to show slow incremental improvement. |
