Taiwan's stock market should pick up from June and end 2011 with firm gains, though the outlook is cloudier following the devastating earthquake in Japan, one of Taiwan's top markets and a source of orders for its hi-tech firms, a Reuters poll found.
A Reuters poll of 13 analysts forecast the benchmark TAIEX index to end this year at 9,500, a rise of around 11 percent from Thursday's close of 8,576.4 and improving on 2010's 9.6 percent gain.
Other sectors that may get a boost from Japan's woes are Taiwan's chemicals and plastics sectors, which may see demand rise as Japanese competitors struggle to recover. Currently the TAIEX index stands down about 4 percent for the year to date, its trend roughly in line with forecasts at the beginning of the year for a dip followed by a pickup from the second half. That pick up was in part seen as being due to presidential elections set for March. Ruling parties in Taiwan traditionally use funds to boost the stock market, which has a very high proportion of individual retail investors, ahead of polls.
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