Taiwan share prices are expected to extend their gains next week on foreign interest in high tech stocks, led by market heavyweight Taiwan Semiconductor Manufacturing Co (TSMC), dealers said Friday.
Investors remained optimistic about the semiconductor sector, and interest in integrated circuit packaging and testing stocks was likely to continue, while flat panel display makers are expected to benefit from bargain hunting after recent heavy losses, they said.
Cell phone manufacturers and steel makers may attract additional market attention on their positive fundamentals.
The market is expected to move between 6,500 points and 6,800 points next week.
For the week to March 31, the weighted index closed up 237.35 points or 3.72 percent at 6,613.97, after a 2.33 percent decline a week earlier.
The average daily turnover stood at 86.82 billion Taiwan dollars (2.67 billion US), following an average of 86.18 billion a week ago.
"The weekly rebound was better than expected ... Market sentiment will improve to some extent after this week's strong showing," Capital Securities analyst Allan Tseng said.
Tseng said it was no surprise that investors were re-entering the market, expecting further gains in the near future.
"Foreign investors were playing a role in the latest buying.
I expect their presence will continue to dominate the market amid optimism about the local technology sector," he said.
Dealers said foreign investors are expected to focus highly weighted stocks like TSMC.
"Riding the latest rebound, TSMC has jumped over its technical hurdle at around 62-63 Taiwan dollars. A stable TSMC will no doubt help the broader market," a dealer with another local brokerage said.
TSMC closed up 1.30 at 64.20 Friday.
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