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Market to rebound this week, dealers say

Local share prices are expected to stage a technical rebound this week after losses amid political concerns following a surprise victory of the Democratic Progressive Party in a mayoral election, dealers said.

After selling most of this week, foreign investors are likely to resume buying, betting Taiwan's bellwether electronic sector will benefit from rising international demand on Microsoft Corp's imminent launch of its new operating system Vista next year, they said.

High hopes that stocks on Wall Street and regional markets will continue their upswing trends are also boosting local investor confidence, they added.

The local bourse is expected to move between 7,400 points and 7,700 points this week, the dealers said.

For the week to Dec. 15, the weighted index closed down 97.48 points or 1.28 percent, following a 0.30 percent a week earlier.

Average daily turnover stood at NT$108.43 billion (US$3.33 billion), compared with NT$120.80 billion a week ago.

"Political jitters seem to have eased later this week after sell-offs in the first half of the week. Investors seem to have calmed down to some extent," said Calvin Chen (陳程坤), an analyst with Yuanta Core Pacific Capital Management (元大京華投顧).

Chen said it is time for investors to return to economic fundamentals, leaving non-economic factors behind.
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