Taiwan share prices are expected to stand firm this week due to an ease in surging oil prices and corporate earnings concerns, dealers said. "The market has been consolidating to a certain degree amid concerns for rising oil prices with some stocks down up to 15 or 20 percent," said Alex Huang, an analyst at Barits International Securities. "A technical rebound is likely to take place this week."
"With the summer peak season for oil consumption coming to an end in September, oil prices will become steady and less likely to breach record-high again," he said.
Meanwhile, the bourse should find support after some major electronic companies announced earnings growth and optimistic outlooks for the third quarter, he added.
Huang expected the market to trade between 6,100 and 6,300 points with bellwether electronics the main focus while financials would also attract more interest with continuing government reforms in the banking industry.
For the week ending August 26, the weighted price index shed 22.39 points or 0.36 percent to 6,136.55 following a 3.02 percent decline in the previous week.
Average daily turnover stood at 64.54 billion Taiwan dollars (2 billion US), down from 68.89 billion dollars a week earlier.