TAIPEI - TAIWAN said on Sunday its move to halve the daily downward limit on the stock market to 3.5 per cent would remain in effect for another trading week, as the government tries to stabilise the local bourse.

Last week, 'the fall of the local stock market was relatively lower than the other markets in Asia... indicating that the halving of the downward limit... has paid off,' the Financial Supervisory Commission said in a statement.

'Since international stock markets are expected to remain volatile this week, responsible government agencies have decided to extend the measure to October 24,' it said.

Analysts say the domestic market is expected to slide in the first half of the week to test the 4,700-point level, but could see a technical rebound by week's end to bring it back up near 5,200 points.

Last week, the weighted index closed down 170.31 points or 3.32 per cent to 4,960.40 after a 10.65 per cent fall a week earlier. -- AFP