Market Trend

Between June 30, 2008 to July 11, 2008, the MCI index dropped sharply from 7337.4 to 6765.1, down by another 572.4 points. As mentioned in WitsView’s last MCI report, the 7000 level was the next benchmark to observe. Thus, with the index level now almost 300 points lower than the 7000 mark, it further confirms the current weak market fundamentals of the TFT LCD industry.

In terms of the global economic environment, it was further battered by rising inflation pressures and record high oil prices during the past two weeks. Between June 16, 2008 to June 27, 2008, the Dow Jones Industrial average declined from 12,269.08 to 11,346.51, down by a whooping 7.5%. Meanwhile, oil prices briefly reached a new high at $142 per barrel last Friday (June 27, 2008).

The market uncertainty surrounding the TFT LCD industry took a further hit as the MCI index fell past the 8000 level. Between June 2, 2008 to June 13, 2008, the MCI index plunged 512.8 points, falling from 8306.2 to 7793.4. The general concern remained focused on the weak panel demand, especially in the TV segment, and the fact that panel prices have once again trended downwards in June by 2%~4%.

From May 19, 2008 to May 30, 2008, the MCI index fell slightly by 49.0 points, dropping from 8378.3 to 8329.3. The small changes in the index shows that there is still some reservations regarding the future development of the TFT LCD industry amid the seasonal weakness. With the index still at a relatively high level, the general outlook remains upbeat. However, the uncertainty in the global economy and sluggish TV end market sales are spurring concerns over how things will develop in the next 2 to 3 months.

According to WitsView’s latest data, MCI has rebounded 374 points from 4552 points to 4926 points from Feb. 6th to Mar. 20th.