Print

Mail

wiki links

Local shares expected to rise this week

Share prices are expected to extend gains this week as investors maintain confidence after the market hit a seven-year high this week, dealers said last Friday.

Adjusting their portfolios, foreign investors should remain buyers in the financial sector, a market laggard, on optimism over profitability of insurance companies which will be allowed to raise overseas investments after a regulaory change, they said.

The gains may be limited, however, with the market closed today and tomorrow for the Dragon Boat Festival, with the trading range put at between 8,500 and 8,700 points. The market will be open on Saturday as a make-up day for today.

For the week to June 15, the weighted index closed up 272.93 points or 3.29 percent at 8,573.64 after a 0.62 percent gain the previous week. Average daily turnover stood at NT$141.34 billion (US$4.27 billion), compared with NT$135.15 billion a week ago.

"Foreign investor buying has been the theme behind the recent gains. Optimistic foreign investors are expected to continue their purchases by rushing to pick up lagging financial stocks," Yuanta Core Pacific Capital Management (元大京華投顧) analyst Jacky Tam said.

Tam said personal computer makers and related component manufacturers were expected to benefit from the latest support as the electronic sector would enter its peak season in the second half of the year.

Additional reporting by staff writer
This story has been viewed 1167 times.