Taipei shares outlook: Higher on NASDAQ gains, foreign interest

TAIPEI (AFX-ASIA) - Share prices are expected to open higher on the back of further overnight gains on NASDAQ and the solid net purchases by foreign investors in the previous session, dealers said. 	    However, profit-taking is likely to emerge early in trade on expectations that NASDAQ may be due for a breather after the recent strong gains, they said. 	    It remains to be seen if UMC and TSMC will weaken in tandem with their ADRs overnight despite the vigorous position-building by foreigners yesterday, they added. 	    Yesterday, the weighted index closed up 99.89 points at 5,608.50 on turnover of 128.05 bln twd.	    Foreign institutions were net buyers of shares worth 15.02 bln twd, local investment trusts net buyers of 4.22 bln and brokers net buyers of 777.99 mln.	    Topping the net purchase list of foreigners were 83.35 mln UMC shares and 53.43 mln UMC shares.  	    "The market stands a good chance of extending gains this morning but many must be ready to take the money and run," SinoPac Securities analyst Teng Ke-hsin said.	    "NASDAQ is approaching major resistance towards 2,200-2,300 points that it will find hard to breach readily in the near term."	    While bellwethers like Intel have slowed from their recent upswing, investors will certainly look to the weaker ADRs of UMC and TSMC overnight, he said. 	    However, investors need not worry too much about any immediate correction as semiconductors will likely stay in the spotlight through the next couple of weeks, he added. 

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