Taiwan share prices are expected to encounter strong technical resistance before the market moves above 4,500 points next week, dealers said on Friday. The bourse is likely to drop at the beginning of the week before regaining momentum in the second half due to adequate liquidity as more institutional investors return to rebuild positions, they said.
Bellwether electronic shares may lead the gains on their attractive valuations after a sell-off ahead of the Lunar New Year holiday last month.
But the financial sector is likely to underperform the broader market on bad loan fears amid the economic meltdown, they added. The market is expected to fall to 4,200-4,300 points on technical factors early on but is likely to overcome the resistance to jump to around 4,550 later, dealers said.
In the week to February 6, the weighted index rose 223.28 points or 5.26 percent to 4,471.25 after a 2.71 percent fall the week before the Lunar New Year holiday.
Average daily turnover stood at 59.76 billion Taiwan dollars (1.77 billion US), compared with 43.41 billion dollars at the close of the previous trading week. "The technical resistance ahead of 4,500 points is stiff. It is time for the market to pull back to some extent after a strong showing this week," Taiwan International Securities analyst Arch Shih said.
Comments
Comments are closed.