Taiwan share prices are expected to see further upside next week on positive sentiment over the outlook for 2010 after the market gained 78.3 percent over the year, dealers said. Foreign institutional investors are likely to rebuild their portfolios at the beginning of a new year, they said, adding high liquidity may continue to boost the market.
The market is expected to challenge 8,300 points or even go higher next week amid optimism over the global economic recovery. For the week to December 31, the weighted index rose 215.52 points or 2.70 percent to 8,188.11 after a 2.82 percent increase a week earlier. Average daily turnover stood at 147.91 billion Taiwan dollars (4.59 billion dollars), compared with 118.86 billion dollars a week ago.
"After the market stood above the key 8,000 point level (for the first time since mid-June 2008) earlier this week, more and more investors are looking into a good 2010," Grand Cathay Securities analyst Mars Hsu said.
With the presence of foreign institutional investors, large cap electronic firms and financial heavyweights may lead the gains, Hsu said. Steel stocks may ride higher on higher product prices, he added.