Share prices are expected to fall this week, with investors likely to pocket profits after the market made a strong showing in recent weeks, dealers said.
Selling pressure may particularly intensify as the market approaches the nearest resistance level of around 7,400 points, they said.
However, ample liquidity is expected to stabilize the broader market to some extent with active interest in select traditional industrial stocks rather than electronics heavyweights.
The market is expected to move to between 7,280 points and 7,480 points this week.
Last week, the weighted index closed up 198.67 points or 2.77 percent after a 1.11 percent increase a week earlier.
Average daily turnover stood at NT$165.61 billion (US$5.24 billion), following an average of NT$136.13 billion the previous week.
"Profit-taking selling was seen in late Friday trade ... That indicates investor sentiment has turned cautious after recent significant gains," Yuanta Core Pacific Capital Management (
During the past six weeks, the local bourse has risen almost 1,000 points or 15.6 percent.
"I expect such caution will continue next week ahead of the critical level of 7,400 points. Market movements may become volatile," Tam said.
Tam said with electronics firms scheduled to report last month's sales next week, investors will watch closely whether the sector has been affected by the current slow season.
"In particular, investors are concerned about personal computer sales amid signs of slow demand," he added.
However, the steel sector is expected to stay relatively stable on expectations that China Steel Corp (
Overall, analysts and investors are still positive about the local market this year.
Merrill Lynch, for, example, has estimated that the benchmark TAIEX will reach 7,500 points soon.
Credit Suisse and JP Morgan, meanwhile, both expect the TAIEX to hit 8,000 points by the end of the year, while Goldman Sachs set an even higher target of 8,200.
Napoleon Osorio is proud of being the first taxi driver to have accepted payment in bitcoin in the first country in the world to make the cryptocurrency legal tender: El Salvador. He credits Salvadoran President Nayib Bukele’s decision to bank on bitcoin three years ago with changing his life. “Before I was unemployed... And now I have my own business,” said the 39-year-old businessman, who uses an app to charge for rides in bitcoin and now runs his own car rental company. Three years ago the leader of the Central American nation took a huge gamble when he put bitcoin
Demand for artificial intelligence (AI) chips should spur growth for the semiconductor industry over the next few years, the CEO of a major supplier to Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) said, dismissing concerns that investors had misjudged the pace and extent of spending on AI. While the global chip market has grown about 8 percent annually over the past 20 years, AI semiconductors should grow at a much higher rate going forward, Scientech Corp (辛耘) chief executive officer Hsu Ming-chi (許明琪) told Bloomberg Television. “This booming of the AI industry has just begun,” Hsu said. “For the most prominent
PARTNERSHIPS: TSMC said it has been working with multiple memorychip makers for more than two years to provide a full spectrum of solutions to address AI demand Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday said it has been collaborating with multiple memorychip makers in high-bandwidth memory (HBM) used in artificial intelligence (AI) applications for more than two years, refuting South Korean media report's about an unprecedented partnership with Samsung Electronics Co. As Samsung is competing with TSMC for a bigger foundry business, any cooperation between the two technology heavyweights would catch the eyes of investors and experts in the semiconductor industry. “We have been working with memory partners, including Micron, Samsung Memory and SK Hynix, on HBM solutions for more than two years, aiming to advance 3D integrated circuit
NATURAL PARTNERS: Taiwan and Japan have complementary dominant supply chain positions, are geographically and culturally close, and have similar work ethics Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and other related companies would add ￥11.2 trillion (US$78.31 billion) to Japan’s chipmaking hot spot Kumamoto Prefecture over the next decade, a local bank’s analysis said. Kyushu Financial Group, a lender based in Kumamoto’s capital, almost doubled its projection for the economic impact that the chip sector would bring to the region compared to its estimate a year earlier, a presentation on Thursday said. The bank said that 171 firms had made new investments since November 2021, up from 90 in an earlier analysis. TSMC’s Kumamoto location was once a sleepy farming area, but has undergone
RSS