Share prices ended little changed yesterday as bargain-hunting emerged in late trade to halt a slide driven by continuing concerns over the nation's political crisis and prospects of US interest rate hikes amid inflation jitters, dealers said.
They said investors turned reluctant to sell their holdings any further even after the legislature decided to include an opposition initiative to recall President Chen Shui-bian (陳水扁) in the agenda for a forthcoming extraordinary session.
The TAIEX closed down 1.73 points or 0.03 percent at 6,442.90, after moving between 6,339.24 and 6,443.21, on turnover of NT$74.61 billion (US$2.29 billion).
"More and more people are looking ahead at the prospect of a substantial long-term recovery after recent heavy losses," SinoPac Securities (
He said based on track records, there could be a strong probability of a substantial market rebound following a steep fall driven by a political crisis, although he added the market may not be immune to further political wrangling as the opposition steps up their efforts to oust Chen.
"As a presidential recall has now been officially put on the legislature's agenda, people can expect opposition lawmakers to step up their efforts to seek evidence, if any, that can unequivocally put Chen's family, if not himself, in the middle of alleged corruption scandals that have fueled calls for his step-down in the first place," Teng said.
However, he said any further share weakness in the near term should be viewed as a perfect opportunity for investors to buy into blue chips for long-term gains.
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