Stocks gained, lifting the benchmark index to its highest in 1 1/2 years. Cathay Financial Holding Co (國泰金控) led gains after the legislature yesterday toughened penalties for crimes related to the banking and securities industry.
"The government has made financial industry reform its top priority in the past three years and now it's time to see some results," said Celine Chiang (江宜津), a fund manager at Polaris International Securities Investment Trust Co (寶來投信). "Financial companies will benefit."
The TAIEX gained 64.75, or 1 percent, to 6274.97, its highest since April 26, 2002. TAIEX futures for January delivery gained 1.04 percent to 6325.
About 5 billion shares changed hands, 26 percent above the average daily trade in the past three months. Shares worth NT$112.2 billion traded, 30 percent above the three-month daily average.
The legislature revised financial laws to impose a minimum seven-year prison term for crimes such as falsifying financial information or using fake stocks to defraud money from investors.
Cathay Financial, the owner of Taiwan's largest insurer, rose NT$1, or 1.8 percent, to NT$56. Fubon Financial Holding Co (富邦金控), Taiwan's largest property insurer, rose NT$0.70, or 2.2 percent, to NT$32.90. Mega Financial Holding Co (兆豐金控), Taiwan's third-largest financial company by market value, rose NT$0.30, or 1.4 percent, to NT$22.
China Steel Corp (中鋼), Taiwan's largest steelmaker, fell, shed NT$0.10, or 0.3 percent, to NT$29.20. China, the world's largest steel consumer, said it will impose anti-dumping duties of as much as 55 percent from tomorrow on cold-rolled steel imports.
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