On Wednesday, the (CNA) Citigroup Global Markets said that with the market flooded in high liquidity, it is possible for the Taiwan Stock Exchange capitalization weighted index to facing 9,000 points in 2012.

In a research data, Citigroup said that even though the brokerage defense its target for the weighted index at 8,200 points for 2012, it does not leave out the possibility that the increasing liquidity position on the back of fund inflows will courage the index even higher to 9,000 points.

The brokerage said said that the local bourse has been on a strong technical rebound, it will attracting more speculative money to chase prices.

After the Lunar New Year holiday that ended Jan. 29, the weighted index around 8.8 percent to 7,869.91 points at the end of the Wednesday session as foreign institutional investors further move funds into the island to reset up their portfolios.

Facing of the New Year holiday, the local bourse emerge below pressure with daily turnover on the ease as market sentiment had been shadowed by uncertainty of the domestic political climate before the Jan. 14 presidential election.

Citigroup has announced target prices on Hon Hai Precision stocks , Chinatrust Financial stocks, UMC stocks and ASE stockss at NT$117.00, NT$25.00, NT$16.00 and NT$32.00, respectively.

The brokerage has also expected Compal stocks Yulon Motor shares and Far Eastern Department Stores to advance to NT$37.00, NT$83.00 and NT$62.00, respectively.

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