Taiwan share prices are expected to continue in consolidation mode next week, with investors continuing to look offshore at other much stronger markets, dealers said.
They said sentiment has also turned more cautious ahead of May 20 (Sunday), the seventh anniversary of President Chen Shui-bian's term in office, with the president due to make a major address.
They said there is always some concern that President Chen may make some remarks that could increase tensions with Beijing during such set-piece occasions. The market is expected to trade between 7,900 and 8,100 points next week. For the week to May 18, the weighted index closed up 2.60 points percent at 8,034.14 after a 0.43 percent fall a week earlier.
Average daily turnover fell to 77.37 billion dollars (2.32 billion US), compared with 92.06 billion dollars. Local media reported investors moved about 200 billion dollars out of the island in the first quarter, putting the funds into markets in the region, particularly China. "The local bourse is short of ammunition to get out of the current doldrums. Without adequate liquidity, it is hard for the index to jump over technical hurdles around 8,100 points," Concord Securities analyst Allen Lin said.
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