Taiwan share prices are expected to gain on hopes that high-tech firms will report improving August sales data due to a recovery in global demand, dealers said Friday. Investors here are also upbeat about the performance of Wall Street, which appears to be stabilising after recent corrections, they said.
The market is expected to challenge 7,300 points next week on institutional buying, while it may see support at around 6,900 points, dealers said. For the week to September 4, the weighted index rose 343.27 points or 5.04 percent to 7,153.13 after a 2.33 percent increase a week earlier.
Average turnover stood at 125.83 billion Taiwan dollars (3.82 billion US), compared with 89.32 billion dollars a week ago. "Judging from the expanded turnover, I think many investors are willing to trade. It is positive," Concord Securities analyst Allen Lin said.
"Optimism towards electronic firms' sales may add momentum to the market," Lin said. Lin said foreign institutional investors may continue to buy as they have just begun to rebuild their portfolios after recent adjustments.
Taiwan International Securities analyst Arch Shih said he expects financials to continue a rebound following recent selling amid fears the signing of a memorandum of understanding to boost cross strait banking would be delayed.
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