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Holiday to slow down TAIEX investors

Share prices are expected to remain rangebound this week because of Tomb Sweeping Day, a public holiday, dealers said on Friday.

Concerns about higher oil prices because of growing tensions between Iran and Britain have dampened market sentiment and encouraged profit-taking on any advance, they said, adding that concerns over corporate fundamentals are expected to cap trading interest ahead of the next earnings season scheduled this month for Taiwanese and US firms.

The market will be closed on Thursday and Friday for the holiday and is likely to trade between 7,800 and 7,950 points this week.

For the week tso last Friday, the TAIEX closed up 25.09 points, or 0.32 percent, at 7,884.41 after a 1.81 percent gain the previous week.

Fubon Securities Investment Services (富邦投顧) analyst Daniel Tseng (曾建詮) said that a holiday presents the market with uncertainties, particularly regarding developments on Wall Street.

"The long holiday effect is expected to dominate next week with many investors reluctant to trade ... so consolidation is very likely to be the theme," he said.

Taiwan International Securities Corp (金鼎證券) analyst Eric Lee agreed.

"The relatively low daily turnover reflected caution about corporate earnings at home and abroad. The slow season of the quarter to March for the electronic sector has made investors wary," he said.
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