Taipei shares outlook - Higher after US rally, TSMC buyback |
|
|
|
Published
:
Wed, 14 Nov 2007 01:18
|
TAIPEI (XFN-ASIA) - Share prices are expected to open higher, extending their technical rebound on Tuesday following a boost from a stronger Wall Street close and a major pullback in oil prices, dealers said.TSMC's buyback announcement, to accommodate Royal Philips Electronics NV's plan to sell its shares, should also give a timely lift to sentiment, they said.Yesterday, the weighted index closed up 56.60 points at 8,727.21 on turnover of 144.78 bln twd.Foreign investors were net sellers of shares worth 13.27 bln twd, local investment trusts net buyers of 103.57 mln twd, and brokers net buyers of 397.56 mln twd.'A knee-jerk reaction to the Wall Street runup is expected,' said an analyst with a securities investment advisory firm who asked to be left unnamed.In particular, the solid showings of the American depositary receipts of Taiwan's technology heavyweights, including TSMC, are expected to inspire gains in their underlying Taiwan-listed shares, he said.Starting today, TSMC will repurchase up to 3.03 pct of its shares outstanding from the open market for a maximum of 1.5 bln usd, or about 48.50 bln twd.The analyst said all the key US indices have stayed above key technical support levels despite recent plunges.'Despite the looming possibility of an economic slowdown, 2008 is also a presidential election year in the US,' he said. 'It is hard to imagine that the Republican-led government will not shoring up the economy to help its candidate.'(1 usd = 32.30 twd)philip.wang@afxasia.com-xfnpw/xfntmCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
|
|
|
|
Print this Story
Taiwan's TSMC to buy back stake of up to 3.03 pct for 48.50 bln twd 