Market Trend

Between December 01, 2008 to December 12, 2008, the MCI index increased from 4012.6 to 4127.5, up by 114.9 points. Although reaching above 4000 on December 1, subsequent index declines were seen again, as predicted by WitsView in its previous report. But during the last few days of the preceding week, the index started to rise sharply. Unexpectedly, aside from standing firmly above 4000, it also rose past the 20-day average. As of December 12, the MCI index was 228 points above the 20-day average. Unfortunately, considering the fact there remains no positive market catalyst in driving the TFT-LCD industry, the likelihood of seeing more index jumps is not high. According to WitsView’s 1HDec panel price survey, signs of prices hitting bottom remain uncertain. In the first half, prices fell between -5% and -10% for the 3 main applications.

Still, it is worthy to see whether the index can stay above the 4000 level. If this occurs, it may signal that the previously recorded lowest point of 3606.0 will not be breached again, which may pave the way for a smoother curve to form.