The Taiwan Stock Exchange Corp. (TSEC) will hold a spring greeting party at the Taipei 101 Tower at 8:30 a.m. today, which will be presided over by chairman Chen Shu of the TSEC.

Representatives from relevant stock and securities trading organizations will be invited to join the party, including Taiwan Futures Exchange Corp., the Over-the-Counter Securities Market, the ROC Securities Investors Association, the ROC Securities Investment Trust and Constancy Association, the ROC Stock and Futures Market Development Foundation, securities houses, etc.

At 9:00 a.m., the TSEC will drum and set off fireworks to welcome the inaugural trading session of the Year of the Pig.

During the last trading session of the Year of the Dog, the weighted price index of the local bourse rallied 72.62 points to close at a high of 7,809, and all the four major securities index futures products rose significantly, boding well for a bullish performance during the first trading day of the Year of Pig, market observers said.

According to TSEC statistics, over the past 12 years, only two years saw the weighted share price index of the local bourse decline in the first trading session of a Lunar New Year from the preceding session.

Accordingly, chances are great for the local bourse to rally today, and the bullish sentiment is expected to last two weeks to one month, based on the tallies for the past years.

Liao Chi-hong, president of the Concord Securities, said the weighted price index of the domestic stock market is expected to fluctuate between 7,600 points and 8,000 points until mid-March, and then a new round of bullish movement will emerge.

Liao said that the electronics sector, especially semiconductor shares, is very likely to remain the mainstay of the stock market, although assets-based shares and construction stocks showed signs of turning strong during the closing session of the Year of the Dog.

Lee Wen-chung, vice president of the Shinkong Securities Investment Trust, said the assets-based shares are poised to embrace a bullish atmosphere at the beginning of the Lunar New Year.

In addition, Lee continued, such China-related stocks as tourism, shipping and construction sectors are also ready to benefit from the improving ties across the Taiwan Strait, especially the upcoming liberalization of the local tourism market to mainland Chinese tourists.

Lee also expects a rosy outlook for such electronics shares as LED, solar energy, and TFT-LCD makers.

Meanwhile, foreign securities firms also pinpointed several reasons for a bullish performance of the Taiwan stock exchange market. Among them are the U.S. economic recovery, expansion of charter flights across the Taiwan Strait and allowing mainland Chinese to make tourist trips to Taiwan, raising the ceiling on overseas investment by local life insurers, the presidential race in 2008, and the PC replacement spree fueled by Microsoft’s launch of the Vista operating system, among others.

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