Taipei shares outlook: Lower on Wall Street/economic concerns

TAIPEI (AFX-ASIA) - Share prices are expected to open lower in the wake of heavy losses on Wall Street overnight and on increasing concerns over the health of the Japanese financial system, dealers said. They said local sentiment, already cautious, will be very concerned about the possibility of financial system problems in Japan, which could further complicate a difficult economic outlook. Yesterday, the weighted index closed up 47.81 points at 5,658.21 on turnover of 104.78 bln twd. Foreign institutions were net buyers of shares worth 5.10 bln twd, local investment trusts net buyers of 1.33 bln twd and brokers net buyers of 695.71 mln twd. "Weakness has extended from the technology sector to the 'old economy' companies on Wall Street, sending a warning signal to investors," a fund manager with a foreign securities investment trust fund company said. "Disappointing developments in the U.S. and Japan economy are sparking fears of a prolonged and worsening economic slowdown," he said, adding that there are no signs as yet of any pick-up. He added, however, that this could be the time to selectively bargain hunt.

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