Taipei shares outlook: Higher on Wall Street rally

TAIPEI (AFX-ASIA) - Share prices are expected to open higher on Wall Street's strong rally overnight, with sentiment also boosted by a perceived easing in Sino-U.S. tensions after the U.S. administration expressed regret over the Chinese pilot missing after last weekend's collision with a U.S. surveillance aircraft, dealers said.	    Yesterday, the weighted index closed down 40.97 points at 5,405.85 on turnover of 69.52 bln twd. 	    Foreign institutions were net sellers of shares worth 7.41 bln twd, local investment trusts net sellers of 953.45 mln twd and brokers net sellers of 189.14 mln twd.	    "There are signs suggesting easing tension between the U.S. and China, which will trigger a possible rebound in the local bourse following the declines over the past few sessions," Entrust Securities Investment Consulting Co assistant vice president Tom Tang said.	    China plays are likely to benefit in particular, he added.	    The electronics sector should get a boost from Dell's affirmation of its first quarter earnings forecast, with Taiwanese suppliers to Dell benefiting the most, he said.	    Dell procures various components and notebook personal computers from local companies, including Quanta, Compal, Lite-On Technology, Taiwan Liton, GVC, Hon Hai, Compeq and D-Link.	    Select internet firms may move in tandem with Yahoo's gains after a brokerage upgrade overnight, dealers said.	    However, Tang said the Dell news should be viewed as an individual event rather than any across-the-board development.	    "Given the softening global economy, the Dell news is a single case and we should not draw any similar conclusions for the industry as a whole," he said.	    Tang said the weighted index is likely to trade in a 5,400-5,800 point range in the near term.    

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