Taiwan share prices are expected to continue rangebound this week, with the market unsettled by the recent sustained weakness in the local currency, taken to reflect foreign investors selling down their holdings, dealers said.
They said the recent easier tone to oil prices had only gone so far and the prospect remains that oil will trade higher over the balance of the year.
At the same time, the central bank's decision to hike interest rates, as expected, by 12.5 basis points was no help to the currency and unconvincing as an effort to head off inflationary pressures resulting from high oil prices.
Adding to the negative tone has been fierce exchanges in parliament between and government and opposition lawmakers and the stalled privatisation of Taiwan Business Bank which has called into question the government's efforts to rationalise the banking industry.
For the week to September 16, the weighted price index shed 87.82 points or 1.44 percent to 6,031.24 following a 0.05 percent gain the previous week.
Average daily turnover slipped to 60.97 billion dollars (1.86 billion US) from 61.21 billion dollars.
The Taiwan dollar fell 0.55 percent over the week to end at 32.931 against the dollar Friday, down from 32.750.
"Rows between the ruling and opposition parties in parliament have intensified political uncertainties and undermined investor confidence," said Daniel Tseng, an analyst at Fubon Securities Investment Services.
Taiwan lawmakers Friday chanted slogans and shoved each other as the opposition again tried to stop Premier Frank Hsieh from addressing parliament, demanding he step down over a recent riot.
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