Taipei shares outlook - Mixed to higher; court verdict on Ma awaited

Taipei shares outlook - Mixed to higher; court verdict on Ma awaited

	Published : Tue, 14 Aug 2007 02:03 By : Agencies Print this Story

TAIPEI (XFN-ASIA) - Share prices are expected to open mixed to higher, extending yesterday's undertone of a technical rebound as investors take note of solid gains on European bourses and steadier Wall Street after various central banks injected liquidity into the global financial system.

But dealers said the upside may be limited as worries persist about the fallout of US subprime mortgage sector problems, and as investors may also want to wait out the court verdict over corruption charges against Taiwan opposition leader Ma Ying-jeou due today.

Yesterday, the weighted index closed up 7.65 points at 8,938.96 on turnover of 145.49 bln twd.

Foreign investors were net sellers of shares worth 4.0 bln twd, local investment trusts net buyers of 1.88 bln twd, and brokers net buyers of 977.18 mln twd.

'We may have yet another rebound,' Jih Sun Securities Investment deputy manager Wilson Lien said. 'But like yesterday, the upside may not go very far because investors are not ready to become that aggressive yet.'

With turnover hovering at relatively low levels in recent sessions, the market is likely to continue a phase of consolidation, probably in a range between 8,800 and 9,200 points, he said.

Lien said the Taipei District Court's verdict over Ma's case will have an immediate impact on the market, in particular China plays that have been outperforming most other shares lately.

'The tricky thing is that they are likely to come under pressure no matter Ma is found guilty or not,' he said. 'A 'not guilty' verdict for the politician who favors closer ties with China is likely to prove a good excuse for profit-taking.'

Ma, who is representing the island's largest opposition party Kuomintang (KMT) in the 2008 presidential race, was indicted in February for allegedly misusing more than 11 mln twd in expense accounts during his tenure as Taipei mayor from 1998 to 2006.

(1 usd = 33.0 twd)

philip.wang@afxasia.com

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