Wall Street boosts TAIEX
Shares closed 0.62 percent higher yesterday, supported by another record finish on Wall Street overnight and subsequent gains in the regional markets, dealers said.
At the same time, they said there was some caution ahead of a speech by President Chen Shui-bian (陳水扁) on Sunday, which led to some selling in late trade but the market managed to hold on above the key 8,000 points level.
The TAIEX was up 49.39 points at 8,037.96, on turnover of NT$84.38 billion (US$2.56 billion).
Risers led decliners 547 to 509, with 298 stocks unchanged.
Jih Sun Securities Investment Consulting Co (日盛投顧) manager Kevin Chung (鐘國忠) said the early rally was spurred by firmer foreign markets but was offset by late selling amid lingering political concerns.
"The local bourse had been lagging behind major foreign markets during the previous uptrend, and Wall Street's overnight gains ... once again have apparently attracted laggard interest here," Chung said.
Besides, investors have learned from experience over the past few years and chose to refrain from any aggressive buying ahead of the anniversary of Chen's inauguration, Chung said.
Li warns about China stocks
Hong Kong tycoon Li Ka-shing (李嘉誠) yesterday warned investors should be cautious in trading on China's stock markets, saying he was "worried" over the high share prices.
"I am worried about the China stock market because of its high P/E ratio," Li said after the annual general meeting of conglomerates Cheung Kong (Holdings) Ltd (長江實業) and Hutchison Whampoa Ltd (和記黃埔), which he controls.
Li, who has been a buyer of shares in many Chinese companies, said volatility in the China market and the economy could affect the Hong Kong bourse.
However, he did not rule out a listing of his own in China, saying the move was possible but only when the market there has reached a certain level of maturity.
Fuhwa buys Capital shares
Fuhwa Financial Holding Co (復華金控), the nation's 11th-largest financial group by assets, said yesterday that it has acquired 20 million shares in Capital Securities Corp (群益證券) for NT$306 million.
In a filing to the Taiwan Stock Exchange, Fuhwa Financial said it bought Capital shares at NT$15.32 per share as part of its short term investment plan.
Fuhwa Financial is owner of the nation's largest brokerage, after completed a merger with Yuanta Core Pacific Securities Co (元大京華證券) on April 2.
The financial holding firm incurred a loss of NT$3.08 billion last year, or negative NT$0.98 per share.
Chippac stock may be halted
Stats Chippac Ltd, Southeast Asia's largest chip-testing and packaging company, said trading of its stock could be halted after investments from two asset managers reduced the availability of shares to the public.
Marathon Asset Management LLP, based in London, owns 6.82 percent of Stats Chippac, according to a notification last Friday, while New York-based Oz Management LLC holds 5.75 percent, according to an April 13 filing.
The filings were announced by Stats Chippac in a Singapore exchange statement yesterday.
"The main point of putting out the notification is for the market to understand the context and basically decide for themselves," said Tham Kah Locke, Stats Chippac's acting chief financial officer.
The Stats Chippac statement said the shares "could be adversely affected" by a trading suspension in Singapore and the US.
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