Stocks are expected to decline further next week amid an absence of positive leads after a 6.4 percent drop this week, dealers said yesterday.
The TAIEX fell below the 4,500-point resistance over the week, hit by weakness on Wall Street and strong selling by foreign institutional investors, they said.
The TAIEX fell 305.57 points over the week to close at 4,459.37 on Thursday, the lowest level this year, after a 4.1 percent decrease in the previous week.
The stock market was closed yesterday due to Typhoon Sinlaku.
"There are no signs showing the market is going to halt the downturn given the continued weakness on Wall Street and a lack of positive news in the fundamental front," said Cooper Leow, manager with Fubon Securities Investment Consulting (富邦投顧).
He said the index may fall further to between 4,300 and 4,200 points in the near term.
Foreign investors cut their positions in some benchmark electronics stocks, such as Asustek Computer Inc (
He predicted there was limited room for further declines or even a possible rebound as the market has overshot after recent falls.
"All the technical indicators showed that the market was overshooting. Therefore, a possible rebound is likely next week."
* The TAIEX fell this week 305.57 points, or 6.4 percent, to close at 4,459.37.
* That's on top of last week's 4.1 percent drop.
* Analysts say the index could drop to 4,200.
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