Taiwan share prices are expected to extend gains early this week as investors look past the political uncertainties raised by Saturday's polls for local government administrators and assembly members, dealers said.
They said profit-taking pressure is likely to emerge later in the week in a consolidation following gains in recent weeks.
Foreign investor support for the key electronics sector should underpin the market and prevent any sharp decline, however, giving a trading range of 6,150-6,300 points this week.
For the week to December 2, the weighted index closed up 100.75 points or 1.64 percent at 6,228.95 after a 0.35 percent gain the previous week.
Average daily turnover stood at 94.62 billion Taiwan dollars (2.82 billion US), up from 76.47 billion dollars.
The hope is that if the opposition does well, as widely expected, then relations with China should improve, a theme which has provided support for transport and tourism stocks recently.
"The market hopes that cross-strait relations will improve after the elections and consequently, so-called 'China chips' - those companies which have business ties with China, such as shipping shares - have benefited," Huang said.
At the same time, profit-taking is likely given that the market has now put on 7.43 percent since November 1 although "continued foreign investor interest in the electronic sector will help stabilise the bourse," Huang said.
Alex Huang, an analyst with Barits International Securities Investment Services, said he is not that optimistic.
"More and more foreign fund managers will go on vacation as the Christmas holiday approaches. I do not think the local market will get much help from foreign buying this week," he said, putting downside support at around 6,000 points.