Taipei shares outlook - Higher on Friday Wall St gains |
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Published
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Mon, 27 Aug 2007 01:42
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TAIPEI (XFN-ASIA) - Share prices are expected to open higher with investors taking their lead from Wall Street's strong gains on Friday, as confidence grows that the worst of the subprime mortgage crisis may be over, dealers said.The Dow Jones Industrial Average jumped more than 1 pct on Friday thanks to astronger-than-expected reading on new-home sales for July.On Friday, the weighted index closed down 42.75 points at 8,690.09 on turnover of 131.70 bln twd.Foreign investors were net sellers of shares worth 5.99 bln twd, local investment trusts net buyers of 1.51 bln twd, and brokers net buyers of 1.78 bln twd.'Good news from the US housing market, the center of the recent global turmoil, is certainly welcome,' said Alvin Teng, a SinoPac Securities assistant vice president.'Let's wait and see if data on US existing home sales due this week will prove equally comforting,' he added.Teng said the worst may be over as the recent crisis of confidence has been effectively resolved by central banks around the world adding liquidity, culminating in the Fed's discount rate reduction on Aug 17.'If markets everywhere keep up their bullish tone and the US economy comes out reasonably strong, the Fed's funds rate decision on Sept 18 should be of less consequence,' Teng said(1 usd = 33.0 twd)philip.wang@afxasia.com-xfnpw/xfntmCOPYRIGHTCopyright 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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