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CPC, Formosa raise prices

State-run CPC Corp, Taiwan (CPC, 台灣中油) and its private rival Formosa Petrochemical Corp (台塑石化) announced yesterday that they would raise wholesale gasoline prices by NT$0.2 per liter and diesel prices by NT$0.3 per liter to reflect the surging crude oil prices.

CPC said its new rates would take effective yesterday midnight, while Formosa said it would adjust its prices at 2am today.

Following the adjustment, the price for CPC's 98-octane unleaded gasoline is NT$29.5, 95-octane unleaded gasoline NT$28, 92-octane unleaded gasoline NT$27.3 and premium diesel NT$24.7 per liter.

Shares near record high

Shares closed 0.11 percent higher yesterday as Wall Street's rebound in late trade overnight nudged the weighted index nearer a seven-year record high, dealers said.

However, concern over a continued slump in China's stock markets, which ended morning trade with about a 6 percent loss, still dampened sentiment, they said.

The TAIEX closed up 9.20 points at 8,303.99 on turnover of NT$134.26 billion (US$4.07 billion).

On the foreign exchange market, the New Taiwan dollar traded NT$0.007 lower to close at NT$33.012 against its US counterpart. Turnover was US$900 million on the Taipei Forex Inc.

Forex reserves dip

The nation's foreign exchange reserves stood at US$265.70 billion at the end of last month, down from US$266.54 billion in April, the central bank said in a statement yesterday.

The month-on-month decline reflected the depreciation of major currencies against the US dollar and an increase in foreign assets held by domestic investors, the statement said.

Chinatrust takeover in the bag

Chinatrust Financial Holding Co (中信金控) yesterday signed an agreement with the Central Deposit Insurance Co (CDIC, 中央存保) to take over financially fragile Enterprise Bank of Hualien (花蓮企銀).

The deal will save the government's restructuring fund a large amount of money, Financial Supervisory Commission Chairman Hu Sheng-cheng (胡勝正) said at the signing.

Chinatrust's bid was the lowest at NT$4.49 billion, which is the price that the restructuring fund will pay for absorbing the debt-ridden bank.

The market originally expected the government to pay out NT$5 billion to NT$7 billion, Hu said.

The FSC urged Chinatrust to keep at least half of the workers at the Enterprise Bank of Hualien and to participate in the auction for the troubled Taitung Business Bank (台東企銀) tomorrow.

In response, Chinatrust Financial chairman Jeffery Koo (辜濂松) said the company may engage in further takeovers.

The company acquired Grand Commercial Bank (萬通銀行) in 2003 and Fengshan Credit Cooperative (鳳山信合社) in 2004.

FSC relaxes remittance rule

In a bid to encourage more foreign investors participation in the nation's futures market, the FSC relaxed a rule yesterday to relieve international investors' difficulties in remitting funds.

The relaxation allows offshore overseas investors to accumulate NT$300 million (US$9 million) of realized gains from New Taiwan dollar-denominated futures products in their direct accounts or omnibus accounts before requiring outward remittances in US dollars, the commission said yesterday.

The caps are NT$100 million for direct accounts and NT$200 million for omnibus accounts.

The rule change was made in response to requests from foreign investors, who contribute 3 percent to the nation's futures market value, the commission said.


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