Market Trend

Between May 25, 2009 and Jun 6, 2009 the MCI index rose from 5426.4 to 5659.8, up by 233.4 points. Despite the weaker index performance during the past month or so, it is mostly attributed to the traditional slow seasonality and still uncertain weak global economy. The recent increases once again highlight the potential positive market trend leading into the third quarter, which is traditionally a strong season. During June 3, the index once again broke past the 20 day average, where it continued to increase during the next few days. As of June 6, the index was respectively 150.2 and 277.2 points above the 20-day and 60-day average.

Thus, WitsView is still confident towards the forthcoming panel demand. This can be explained by the following two reasons. First, many of China’s TV vendors have arrived in Taiwan to hold talks with panel makers in ensuring a sufficient supply. Naturally, this will naturally provide a notable boost to Taiwan’s panel industry in the near term. Second, according to WitsView’s latest survey, the panel price for the 3 main applications in 1HJun is projected to go up by 2~7%. These developments should help support additional MCI increases in the future.