Taiwan share prices are expected to keep rising in the week ahead amid renewed interest in the leading electronics industry, dealers said. Investors were expected to buy select electronics stocks like the makers of optical parts and liquefied crystal displays to build positions before the bourse closes Friday for the Lunar New Year holidays, they said.
In the week just ended, the weighted index gained 31.02 points or 0.53 percent to close at 5,879.93 after a 0.69 percent fall the previous week.
Average daily turnover however shrank to 50.21 billion Taiwan dollars (1.56 billion US) after 52.91 billion dollars the previous week.
"Most investors are reluctant to inject extensive liquidity into the bourse ahead of the holidays," said analyst Huang Hsun-huei of Capital Securities.
"But there are obvious signs that many local and foreign institutions are returning to the market with focus on electronics which have long been ignored due to a gloomy outlook," Huang said.
Taiwan Semiconductor Manufacturing Co (TSMC), the world's leading contract microchip maker, reported Thursday record net profits and sales for 2004 although sales and after-tax profits for the fourth quarter fell due to lower wafer shipments and profit margins.
Dealers said fresh buying in electronic heavyweights would push index up but traditional plays and financial stocks would be under selling pressure after advances in previous weeks.