Taiwan share prices are expected to continue firmer next week after President Chen Shui-bian survived an opposition attempt to force his ouster, removing a major political uncertainty overhanging the market, dealers said Friday.
They said sentiment got an additional boost Friday after the US Federal Reserve hiked interest rates by an as expected 25 basis points to 5.25 percent and also suggested it would take a softer stance on monetary policy.
The Fed statement was welcomed by all the markets after several months of turmoil on concerns the US central bank would continue to hike rates in order to head off inflation driven by rising oil prices.
Taiwan central bank's own modest tightening of monetary policy Thursday was also supportive.
For the week to June 30, the weighted index rose 252.1 points or 3.91 percent to 6,704.41 after a 1.88 percent decline the previous week.
Average daily turnover stood at 88.69 billion dollars (2.72 billion US), up from 82.60 billion dollars.
"The two main reasons for the recent falls - domestic political uncertainty and US interest rates - have been removed and a recovery is on the way," said Johnny Lee, an analyst at President Securities.
"Major companies will announce their June earnings next week and so far the prospect for makers of dynamic random access memory (chipmakers) seems good," Lee said, highlighting the key electronics sector. Lee noted the rise in investor interest and volume Friday, when the market put on 1.47 percent, and this should provide a good basis going into next week.
Some dealers cautioned however, that there could be some volatility due to profit-taking in the immediate term as the market moves closer to 6,800 points.
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