Market Trend

Between January 25 and February 8, MCI index tumbled 454.1 points from 6703.6 points to 6249.5 points. After falling below the critical crossover point on the 20-day and 60-day average line, MCI continued to slide. Coupled with panel makers’ weaker-than-expected financial results in 4Q09, the overall market is no longer confident about a a stronger than usual traditional weak seasonality. In addition, despite the continued rise of panel price due to short supply of upstream components, under the tight supply, downstream customers have been restocking and double-booking since early 2010. If the future prospects are weaker than anticipated, it could lead to extremely low selling price due to high inventory build-up. Finally, European credit crisis is sweeping the world, which will affect the future of the global capital markets. Such negative factors lead to lower market confidence about the future.