The TAIEX is likely to consolidate with an upward bias next week after rallying to a record high of 16,571.28 on Thursday, analysts said.
Heavyweight tech plays, including Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), could lead the charge after its American depositary receipt gained more than 5 percent to US$124.8, Chifar Securities Co (啟發投顧) said.
The local bourse is closed until Tuesday next week for the Tomb Sweeping Day holiday.
Photo: Wang Meng-lun, Taipei Times
The market has not yet responded to TSMC’s confirmation that it is to invest US$100 billion to fund capacity expansion and research and development of advanced process technologies in the next three years, Chifar said.
TSMC unveiled the rare multiyear investment plan due to customer demand amid a global chip shortage.
Shares of TSMC, a contract chipmaker that supplies Apple Inc, Nvidia Corp, Qualcomm Inc, Advanced Micro Devices Inc and other tech giants, have dropped more than 10 percent since the middle of February, in line with global tech share corrections, Chifar said, adding that it is likely TSMC would catch up with the main board soon.
More Rich Securities Co (摩爾投顧) said that listed companies are about to release earnings results for the first quarter, with the figures likely to beat expectations.
Companies from different sectors have voiced plans to increase selling prices amid growing demand from clients around the world.
Foreign investors, who last month trimmed their holdings of local shares by more than NT$150 billion (US$5.26 billion), might increase their stakes, More Rich said.
Still, investors should be cautious, as the TAIEX could meet resistance above the record high, it said.
Global markets are groping to assimilate the advance in 10-year US Treasury yields to above 1.7 percent, a sign that major central banks might have to end loose monetary policies earlier than expected as the world emerges from the COVID-19 pandemic, analysts said.
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