Taiwan share prices are expected to trade range-bound this week amid cautious sentiment with more companies due to release their second quarter and first-half earnings, dealers said. The bellwether electronics shares which slid this week should find some support from the optimistic third quarter outlook by the heavyweight Taiwan Semiconductor Manufacturing Co (TSMC), dealers said.
TSMC's chief executive officer Rick Tsai said Tuesday the global semiconductor industry is expected to grow 4.0 to 5.0 percent this year, though the growth for the wafer foundry industry could be lower than that level.
The company also expected its wafer shipments to increase by 14 to 16 percent, in the third quarter to September from the second, while gross margin should be 41 to 43 percent against 39.70 in the second.
"Uncertainty is rife as investors wait for more companies to release second quarter and first-half earnings this week," said analyst Huang Hsun-huei of Capital Securities.
"The government's plan to allow more Chinese tourists to visit Taiwan is likely to help boost investor confidence but the actual impact would be limited as tourism isn't the mainstream in the market," he added.
Share prices are expected to consolidate in the 6,200-6,400 point range this week, he added.
For the week ending July 29, the weighted price index shed 68.75 points or 1.08 percent to 6,311.98, following a 0.47 percent decline in the previous week.
Average daily turnover stood at 107.01 billion Taiwan dollars (3.35 billion US), down from 107.15 billion dollars a week earlier.
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