The analysts, however, urged the government to respect the market mechanism. They said they didn't want to see government intervention too soon.
Kurz said such intervention would only create false comfort for investors.
The government should let the selling pressure be released and intervene only if the index slides to around 6,000 points, Hsieh said.
As for the New Taiwan dollar, Hsieh said the unit may weaken against the US dollar in the short-term and may hit as low as NT$33.4. He didn't give a timeframe for this prediction.
The NT dollar will strengthen against the greenback in the long run in line with other Asian currencies, Hsieh said, predicting the unit rise to NT$33.05.
The NT dollar declined NT$0.025 to close at NT$33.253 against the US dollar on the Taipei foreign exchange market Friday after the assassination attempt on President Chen Shui-bian (陳水扁).
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