Taiwan share prices are expected to be range-bound as investors assess the market's failure to hold the key 8,000 points level after a recent steady advance, dealers said Friday.
They said many investors are likely to want to remain on the sidelines as they await first quarter results from the top local electronics companies.
Market sentiment has also been dampened by concerns over possible credit-tightening measures in China as Beijing seeks to keep the runawy economy under control, they added. Foreign investors seem to have retreated from the trading floor too, waiting for fresh leads after sales of more than 11 billion dollars (332 million US) in a single trading session Thursday.
Next week's trading range was put at 7,800 to 8,000 points. For the week to April 20, the weighted index closed down 102.45 points or 1.27 percent at 7,942.67 after a 0.51 percent gain the previous week.
Average daily turnover stood at 109.29 billion dollars, compared with 107.45 billion dollars. "Although the market managed to stage a technical rebound Friday, it faced great resistance when approaching 8,000 points," Capital Securities analyst Haug Shun-hui said.
The weighted index rose 0.69 percent Friday in modest trade. "The reduced turnover showed investors' caution. Without increased participation, it is unlikely to jump over the 8,000 point barriers soon," Huang said.
Huang said the market expects the major electronic firms will not report satisfactory results for the first quarter, traditionally a weak period for the industry.
However, Yuanta Core Pacific Capital Management analyst Jacky Tam said the electronics sector is starting to see an improvement in profitability with the start of the second quarter.
"The current consolidation is a short-term hiccup. I am confident in the market's long-term prospects," Tam said.
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