Taiwan stocks will close the year roughly where they are now, according to a Reuters poll, as optimism over more flexible yuan policy is capped by concerns the eurozone debt crisis could dent the global economy. The main TAIEX index was seen at 7,600 points by the end of the year, around where it closed on Thursday.
That is a significant downgrade from the 8,500 predicted in a similar poll taken three months ago. The TAIEX is now expected to rise to 8,000 by mid-2011, according to the median forecast from 15 fund managers and analysts.
Some investors were worried that the eurozone debt crisis would delay purchase of electronics products, denting profits of the world's top two contract chip makers, TSMC and UMC.
"The momentum of corporate fundamentals would not have too much excitement to look forward to," said analyst Alex Huang of Mega Securities.
Laptop PC makers Quanta and Compal and others that have factories in China could see their costs rising after iPhone maker Foxconn International's hubs in southern China were hit by a spate of suicides.
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