Taiwan share prices are expected to encounter resistance as foreign investors remain sidelined ahead of results from the electronics sector, a dealer said on Friday. Experts say market sentiment has turned cautious amid concerns that a rising Taiwan dollar could hit the sector's export competitiveness.
They say there is lingering worry over the US economy and possible Wall Street volatility, but that some sectors could benefit from hopes for better ties with mainland China due to the policies of Taiwan's incoming government. President-elect Ma Ying-jeou will take office on May 20.
In the week to April 18, the weighted index closed up 164.76 points or 1.85 percent at 9,074.34 after a 3.64 percent increase a week earlier. Average daily turnover stood at 194.43 billion Taiwan dollars (6.42 billion US), compared with 147.43 billion dollars a week ago.
"Without meaningful buying from foreign investors, the local market is expected to fall into a consolidation mode next week," Grand Cathay Securities analyst Mars Hsu said. Hsu said foreign investors started taking profits by cutting high tech stock positions this week on uncertainty over the sector's profitability.
Comments
Comments are closed.