Market Trend

Between May 11,2009 and May 22,2009 the MCI index decreased from 5672.5 to 5480.7, down by 191.8 points. As the index crossed below the 20-day average on May13, it was a signal to further declines in the following week or so. Amid the still uncertain global economy and the fact that Q2 still marks the traditional weak seasonality, it weighed down on the MCI development during this period.

Nevertheless, WitsView still believes further MCI increases will be seen in the future. This can be seen from 3 aspects. First, despite the crossover, as of May 22, the index was only 61.7 points lower than the 20-day average. Meanwhile, it was still 252.9 points above the longer-term 60 day average. Second, based on WitsView’s survey, the Labor Day holiday TV sales in China was quite strong. Third, WitsView’s latest panel price survey shows prices rising by another 1-3% in 2HMay. Although the increase partly stems from panel makers’ more aggressive increases in easing the financial pressure, it also indicates the market demand is still relatively strong. For example, several China TV brand vendors are scheduled to come to Taiwan during June in procuring LCD panels. These are all conducive factors that should push up the MCI index in the near future.