Taiwan share prices are expected to extend gains next week, supported by better-than-expected results from some of the electronic heavyweights, dealers said Friday.
Although profit taking is likely after recent significant gains, sustained foreign investor interest should provide additional support, they said. The market is expected to trade between 7,100 points and 7,300 points, with the top end market a modest build on this week's solid advance.
"Investors are encouraged by the (positive) market performance. The trend to go higher remains in place," Grand Cathay Securities analyst Frank Wu said.
In the past five weeks, the market has risen more than 12 percent.
Wu said profit-taking would likely limit gains next week.
Huang Hsun-hui, an analyst with Capital Securities, said the high-techs are expected to lead after seveal majors including Taiwan Semiconductor Manufacturing Co United Microelectronics Corp, BenQ and AU Optronics reported higher-than-expected results.
A recent relaxation in China-bound investment rule allowing projects in low-end integrated circuit packaging and testing services, and in small-sized flat panel display production should continue to prove supportive, Huang said.
"These electronic heavyweights are expected to satisfy foreign investors' appetite," he added.
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