Taiwan share prices are expected to extend losses as investors remain concerned over a global economic recession, dealers said on Friday. Fears of volatility on Wall Street are likely to impact the local bourse due to uncertainty after the US government changed tack on its use of a 700 billion dollar mortgage bailout package, they said.
Foreign institutional investors may continue to sell the bellwether electronics sector as it feels the pinch amid falling global demand, they said. The market is expected to test the nearest technical resistance at around 4,200 points next week due to fragile confidence, while a technical rebound is likely to follow with a cap at around 4,500 points, dealers said.
For the week to November 14, the weighted index close down 289.63 points or 6.11 percent at 4,452.70 after a 2.63 percent fall a week earlier. Average daily turnover stood at 51.87 billion Taiwan dollars (1.57 billion US), compared with 72.04 billion dollars a week ago.
"Despite a rally Thursday, Wall Street remains very unstable. The overseas factors will continue to dictate local market movements," Concord Securities analyst Allen Lin said.
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