Share prices closed little changed yesterday following a lackluster showing on Wall Street on Friday, with sentiment remaining cautious given concerns on the local political outlook, dealers said.
They said Beijing's latest credit-tightening measures had only a muted impact, with China plays gaining ground on expectations the yuan would continue to strengthen and the Chinese economy would power ahead.
The weighted index edged up 0.11 percent to close at 6,583.04, off a low of 6,541.33 and a high of 6,603.98, on turnover of NT$80.11 billion (US$2.46 billion).
"The market seems on track for a further technical rebound in the near term, but most investors would rather refrain from helping push the upside aggressively just yet," SinoPac Securities (建華證券) assistant vice president Alvin Teng (鄧可欣) said.
After Friday's rebound, people opted to take a break and mull the earnings prospects of technology bellwethers, he said.
"It makes perfect sense for investors to wait for technology companies' results for the seasonally weaker second quarter," he said. "When such numbers become available from late July, they will also want to have more proof whether the seasonal pattern of a stronger second half remains the case this year."
All in all, the broader market is unlikely to see big gains until the US Federal Reserve decides on its next interest rate hike, he said.
"We will have a further technical rebound, but this is likely to prove confined rather than across-the-board," he added.
Taiwan Semiconductor Manu-facturing Co (台積電) was steady at NT$59.40, while United Microelectronics Corp (聯電) was down NT$0.05 at NT$18.70.
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