Taipei shares outlook - Higher on Wall St rebound, bargain-hunting |
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Published
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Wed, 28 Nov 2007 01:19
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TAIPEI (XFN-ASIA) - Share prices are expected to open higher after Wall Street's rally as investors welcomed the sale to the Abu Dhabi Investment Authority of a 7.5 bln usd stake in Citigroup Inc.The US market rebound is expected to trigger attract bargain-hunting interest in the local bourse.Yesterday, the weighted index closed down 152.57 points or 1.79 pct at 8,375.76, after moving in a range of 8,207.97 and 8,454.36.Turnover was 115.92 bln twd.Foreign investors were net sellers of shares worth 7.18 bln twd, local investment trusts were net sellers of shares worth 108.06 mln twd and brokers were net sellers of shares worth 637.24 mln twd.'Investors here will be more willing to hunt for bargains following recent declines, with Wall Street's advance looking strong enough to drive gains here at the opening bell,' said an analyst with a domestic securities investment consulting firm.'The Citigroup stake sale will raise hopes of further capital injections into the US financial sector.'Uncertainties remain over the US economy but some of the damage from the mortgage crisis will have been addressed, the analyst said.Separately, he said investors are pinning their hopes on buybacks by local companies to defend their share prices.'Share buybacks will not only support share prices but can also be transferred to employees as bonuses,' the analyst added.(1 usd = 32.30 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 close higher in see-saw session driven by bargain hunting 