Taiwan share prices are expected to rise this week amid growing investor confidence and ample liquidity, dealers said. Electronic stocks, which have led the market in the past week, are expected to continue their upward trend due to continuing investor interests. "The share prices reached 6,100 points and there is a good chance of going up to 6,200 points this week if there is no significance decline in Wall Street," said Daniel Hsin of Capital Securities.
"The increasing fund flows to the market signal that investor confidence has recovered and is growing," he said.
Hsin said the bellwether electronics stocks are likely to keep attracting buyers as some companies are anticipating profits when releasing their earning reports this week.
Expectations of orders secured during the Computex Taipei trade show which is coming to an end Saturday was expected to boost the electronics sector.
Meanwhile, the government's plan to raise taxes, which has triggered worries over the impact on inflation and consumption, is unlikely to further affect investor sentiment due to strong opposition, he said. For the week to June 3, the weighted price index gained 116.40 points or 1.94 percent to 6,107.95, following a 0.62 percent gain the previous week.
Average daily turnover stood at 81.08 billion Taiwan dollars (2.55 billion US), up from 55.92 billion dollars a week earlier.
offshore stock market
Taiwan is set to approve an offshore stock market at the end of June, the Commercial Times reported on Sunday, as part of efforts to bring the island's markets more in line with international standards.
Details such as listing and trading rules of the offshore market are expected to be unveiled at the end of the month, the Chinese-language newspaper quoted unidentified senior officials at the Financial Supervisory Commission as saying.
Stocks listed on the offshore market are expected to be denominated in US dollars with no daily trading limits, the paper said. The domestic stock market houses shares that are traded in Taiwan dollars.
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