Taiwan share prices are expected to consolidate this week, perhaps testing the 5,800 point level amid concerns over corporate results and a lack of fresh leads, dealers said. There were no signs that foreign funds were returning to the market as most investors chose to stay sidelined in the run-up to the Lunar New Year in early February, leaving the traditional holiday rally in tatters.
The gloomy outlook in the electronics sector was expected to continue to weigh on index heavyweights Taiwan Semiconductor Manufacturing Co and United Microelectronics Corp.
For the week to January 21, the weighted index lost 40.61 points or 0.69 percent to close at 5,848.91 following a 0.78 percent fall the previous week.
Average daily turnover totalled 52.91 billion Taiwan dollars (1.65 billion US) after 52.34 billion dollars the previous week. The market was depressed this week mainly due to falls suffered by Wall Street over weak corporate results.
Tseng expected share prices to continue to exhibit weakness and test the 5,800 point level with rotational plays in selected stocks.
A formal cabinet reshuffle, which will follow the resignation of premier Yu Shyi-kun on Monday ahead of the opening of parliament, was not expected to impact the market "which has become indifferent to local politics - except on issues concerning China," Tseng said.
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