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Updated Monday, February 6, 2012 0:00 am TWN, The China Post news staff

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Stock correction may follow festival: expert

The China Post news staff--With Taiwan stocks closing 507.55 points higher last week, all eyes are watching whether a selling spree will emerge after the Lantern Festival today.

Last week the local stock exchange opened six days to make up for the one extra day off during the Lunar New Year period. On each of those six days the TAIEX rose. For all of last week the index rose 507.55 points, more than 7 percent, and closed at 7,741.24 Saturday.

According to historical data over the past 10 years, the TAIEX has always risen one to two weeks after the Lantern Festival. Yet Liu Hsi-kun, president of Masterlink Securities, said things could be different this year.

“Certain stocks have risen by 40 to 50 percent, and profit-taking will be inevitable,” he said.

Yet the correction would be technical in nature, with the TAIEX expected to move between 7,500 and 7,800, he said.

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