Stocks at new seven-year high
Shares closed up 1.45 percent yesterday, striking another near seven-year high on Wall Street where US economic data alleviated concerns over possible interest rate hikes, dealers said.
They said insurance companies led the market higher on expectations of an improvement in earnings after a statutory revision, which should allow them greater exposure to overseas investments.
The TAIEX closed up 122.92 points at 8,573.64, the highest closing level since July 18, 2000, when the index hit 8,582.75 points.
The market moved in a range between 8,511.07 and 8,578.33 points on turnover of NT$151.73 billion (US$4.58 billion).
For the week to yesterday, the weighted index closed up 272.93 points or 3.29 percent after a 0.62 percent gain the previous week.
Average daily turnover stood at NT$141.34 billion, compared with NT$135.15 billion a week ago.
Capitalization up 22.3%
Market capitalization of Taiwan's listed and over-the-counter (OTC) stocks stood at NT$22.33 trillion (US$675.75 billion) at the end of last month, up 22.3 percent from the same period last year, the Directorate General of Budget, Accounting and Statistics (DGBAS) reported yesterday.
DGBAS officials said that thanks to a booming stock market, the weighted index, the barometer of the stock market, increased to 8,144.95 at the end of last month, up 1,298 points year-on-year.
The market capitalization of the listed stocks totaled NT$20.16 trillion, up 20.4 percent year-on-year, while the stocks traded amounted to NT$10.52 trillion, down 3.6 percent from the same period last year.
The index measuring value of over-the-counter stocks rose to 181 last month, up 39 points from the same period last year. The number of over-the-counter shares also increased to 533 with a market capitalization totaling NT$2.17 trillion and shares traded amounting to NT$3.11 trillion.
NCC allows tainted merger
The nation's telecom regulator yesterday approved a merger between local fixed-line company Asia Pacific Broadband Telecom Co (APBT, 亞太固網) and its mobile affiliate Asia Pacific Broadband Wireless Communications Inc (APBW, 亞太行動寬頻), the National Communications Commission (NCC) said on its Web site.
Deutsche Bank expressed disappointment at the decision. The German bank, APBT's credit bank, opposed the merger after the debt-ridden APBT failed to pay interest on a NT$6.8 billion bank loan arranged last year with APBW's assets as guarantee.
"Deutsche Bank and the lenders are deeply disappointed with the NCC decision and will continue to seek recovery of APBW's unpaid debts through the courts," it said in a statement released yesterday.
The NCC said the merger would not affect in any way the interests of the Germany lender.
CD-ROM tax expires
The EU will terminate its anti-dumping tax on Taiwanese-made CD-ROMs this month when a five-year EU anti-dumping tax program expires, officials from the Bureau of Foreign Trade said on Thursday.
The European Commission said recently that the anti-dumping tax on imports of Taiwanese CD-ROMS, imposed on June 18, 2002, would not be extended when the program expires on Monday, bureau officials said.
Over the past five years, the European Commission has imposed anti-dumping taxes, ranging from 17.7 percent to 38.5 percent, on Taiwanese CD-ROMs.
The commission began a fresh probe into CDs from Taiwan in March, but received no inquiries nor complaints from any EU firms about the imports, prompting the commission to bring the measure to an end, bureau officials said.
Gogoro Inc (睿能創意) yesterday launched its first electric bicycle, the Gogoro Eeyo 1, in Taiwan, after unveiling the bike in New York in late May and in France on Tuesday. The company said it would also introduce the series in other European countries such as Germany and the Netherlands. The “Eeyo project” is the fourth of Gogoro’s eight projects that concentrate on smart transportation, which includes Gogoro’s electric scooter, battery swap system and electric scooter sharing service, company founder and chief executive officer Horace Luke (陸學森) told a media briefing in Taipei. “There are various types of city commuters. We will not
BAD RAP: The exchange said Tatung had seriously breached shareholders’ rights and failed to give a satisfactory explanation of its board election dispute Tatung Co (大同) shares yesterday plunged by the maximum daily limit of 10 percent to NT$18.90, the lowest in three months, after the Taiwan Stock Exchange (TWSE) on Tuesday evening changed the company’s classification to a full-delivery stock effective tomorrow. The TWSE’s move follows the company’s failure to give a clear and satisfactory explanation of why it deprived dozens of shareholders of their voting rights during a board election at the annual shareholders’ meeting on Tuesday morning. Under the exchange’s regulations, investors are not allowed to engage in margin trading of a full-delivery stock, TWSE spokeswoman Rebecca Chen (陳麗卿) told
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in