Taiwan share prices are expected to be range-bound this week amid lingering concerns over record-high oil prices and the island's weak foreign trade surplus, dealers said. However, the government's decision to raise its official 2005 GDP forecast to 3.65 percent from the 3.63 percent projected in May should help ease the downside, they said.
The Directorate General of Budget, Accounting and Statistics also expects GDP in the third and fourth quarters of the year to grow 4.32 percent and 4.63 percent respectively, up from its May estimates of 4.04 percent and 4.31 percent.
But investors worry that slower exports would reduce Taiwan's trade surplus to impact on economic growth, they said.
"The recent surge in oil prices also added uncertainties in the market and investors tend to take a more cautious approach and limit their buying," said Daniel Tseng, an analyst at Fubon Securities Investment Services.
Tseng expected the market to consolidate in the 6,250-6,050 range with bellwether electronics the main focus.
"But the market is likely to regain some momentum following the government's positive forecast for economy growth this week," he said, adding that the peak seasons traditionally fall in the second half of the year.
For the week ending August 19, the weighted price index shed 192.02 points or 3.02 percent to 6,158.94 following a 1.47 percent decline in the previous week.
Average daily turnover stood at 68.89 billion Taiwan dollars (2.15 billion US), down from 94.53 billion dollars a week earlier.
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