Taiwan share prices are expected to extend gains next week as rotational buying boosts industrial stocks and China plays which have benefited from close business ties with the mainland, dealers said.
Market moves, however, would also be dictated by Federal Reserve Chairman Ben Bernanke's speech with investors watching what the Fed will do with interests rates to resolve sub-prime mortgage problems in the US, they said. The market is expected to move between 8,700 points and 9,200 points next week, they said.
For the week to August 31, the weighted index closed up 292.07 points or 3.36 percent at 8,982.16 after a 7.41 percent increase a week earlier. Average daily turnover stood at 136.08 billion Taiwan dollars (4.12 billion US), compared with 132.65 billion dollars a week ago.
"Friday's strong showing seems to have relieved many investors to some extent, after recent major technical corrections on concerns over the US housing crisis," Concorn Securities analyst Allen Lin said.
"Foreign funds are starting to buy into select stocks which have reported satisfactory interim results largely on their presence in the China market," Lin said, referring to cement, food, steel and petrochemcal manufacturers.
But, Bernanke's comments could affect market sentiment, Lin said.
The US central bank chief is scheduled to speak at 10:00 am EST (1400 GMT Friday) at an annual conference in Jackson Hole, Wyoming.
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