Taipei shares outlook - Higher on Wall St rebound, US rate cut hopes |
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Published
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Wed, 21 Nov 2007 01:27
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TAIPEI (XFN-ASIA) - Share prices are expected to open higher after Wall Street's overnight gains, which were driven by renewed hopes for US interest rate cuts, dealers said.Comments from the Federal Reserve on a slowing economy next year triggered hopes for a rate reduction when the Fed meets next on Dec 11.Yesterday, the weighted index closed up 0.15 point at the day's high of 8,680.86, after hitting a low 8,372.05. Turnover was 139.99 bln twd, up from 93.82 bln in the previous session.Foreign investors were net sellers of shares worth 14.70 bln twd, local investment trusts were net sellers of shares worth 535.60 mln twd and brokers were net sellers of shares worth 890.81 mln twd.Samson Chueh, an assistant vice president with Yuanta Core Pacific Capital Management Co Ltd, said the US lead will dominate local trading in the absence of major fundamental drivers here.'The Fed factor is definitely eye catching, with investors here pinning their hopes on currency appreciation abd capital inflows.'He said the domestic market's success in defending the annual moving average of around 8,400 points yesterday will strengthen hopes for government support for Taipei stocks ahead of parliamentary and presidential elections in the first quarter of 2008.There is a chance for the local bourse to consolidate toward 8,500-8,900 points, depending on developments in global markets, Chueh added.(1 usd = 32.40 twd)adela.lin@afxasia.com-xfnal/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.
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Taipei shares outlook - Higher on firmer Wall Street, tech to lead recovery 