Taiwan share prices are expected to remain rangebound this week despite the government's latest efforts to boost the economy amid a weaker projection for full-year economic growth, dealers said. China's expected announcement allowing mainlanders to visit Taiwan for sightseeing would strengthen tourism-related stocks such as hotel and transport for a short period, they added. But the general bourse was expected to fluctuate within small range with a possibility it could break the 6,000-point level. For the week to May 20, the weighted price index shed 26.70 points or 0.45 percent to 5,954.69 following a 0.23 percent gain the previous week.
Average daily turnover stood roughly the same at 62.00 billion Taiwan dollars (2.0 billion US).
Government financial incentives for local businesses would do little to push up investor confidence amid slower economic growth, Tseng said.
Taiwan's top budgeting agency has cut the island's 2005 gross domestic product (GDP) forecast to 3.63 percent from the 4.21 percent projected in February due to a global economic slowdown.
In a bid to boost business activity, the authorities would provide an additional 200 billion dollars in loans and 100 billion dollars in credit guarantees to small and medium-sized enterprises.
Another 300 billion dollars would be allocated for a preferential housing loan program which was expected to benefit 160,000 homeowners, Hsieh said.
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