Taiwan share prices are expected to chalk up further gains, with investors optimistic on the outlook for the key electronic sectors as it enters its peak season in the second half of the year, dealers said on Friday.
Market sentiment remains positive as foreign funds continue active to take advantage of the relatively low valuations of local shares compared with their counterparts in the region and on Wall Street, they said.
The market is expected to trade between 9,450 and 9,750 points next week.
For the week to July 20, the weighted index closed up 114.60 points or 1.21 percent at 9,585.90 after a 3.08 percent gain the previous week.
Average daily turnover stood at 225.58 billion dollars (6.90 billion US), compared with 229.10 billion dollars. Buying in the electronic sector, which consolidated earlier, resumed Friday to help push the broader market 1.19 percent higher.
"Interest in the electronic sector is likely to continue into next week as it has turned technically strong," Capital Securities analyst Huang Hsun-hui said, adding the industry is gathering momentum on hopes of improved earnings in the second half of the year.
Huang said with the Dow Jones Industrial Average ending above 14,000 points for the first time ever Thursday, the local market is expected to remain in an upbeat mood.
"The electronic sector may play a key role in the first half of next week, while buying may rotate to property developers and companies with rich real estate for development later," Huang said.
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