Taipei shares outlook - Slightly higher on US lead; upside limited |
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Published
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Tue, 17 Jul 2007 01:55
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TAIPEI (XFN-ASIA) - Share prices are expected to open slightly higher in a modest rebound following another record finish of the Dow Jones Industrial Average overnight.But the upside will be limited as profit-taking could emerge anytime after the market's recent rally and as investors generally take a cautious stance ahead of first-half corporate earnings results, dealers said.Yesterday the weighted index closed down 53.98 points or 0.57 pct at 9,417.32, off a high of 9,539.20 and low of 9,403.73, on turnover of 229.49 bln twd.Foreign investors were net sellers of shares worth 8.57 bln twd, local investment trusts were net buyers of shares worth 2.82 bln twd, and brokers were net sellers of shares worth 2.00 bln twd.Beyond Asset Management Co Ltd president Michael On said the market could get a modest boost from the US market's performance.'Given the Dow's record showing overnight, the local bourse could stage a technical rebound in early trade after yesterday's declines,' he said.But he warned that profit-taking pressure could emerge anytime.'There is mounting pressure following the previous rally; some investors may lock into profits as the domestic market's price-to-earnings ratio stands at a neutral level.'He said that investors will also be generally cautious ahead of first-half corporate earnings results.(1 usd = 32.80 twd)adela.lin@afxasia.comal/rcxfnal/xfnrcCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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