Stocks rose the most in more than three years yesterday as Cathay Financial Holding Co (
"The Fed emerged as the cavalier in financial market turmoil and investors cheered by putting their money back into markets," said Yin Nai-yun, who oversees US$172 million at Prudential Securities Investment Trust Enterprise in Taipei.
The TAIEX index jumped 425.31, or 5.3 percent, to close at 8,515.60 in Taipei, its biggest gain since May 2004. The index dropped 9.4 percent last week, its worst since March 2004. All but 19 of the 651 stocks traded on the Taiwan Stock Exchange advanced yesterday. Futures due in next month surged 6.9 percent to 8,428.
PHOTO: CHANG CHIA-MING, TAIPEI TIMES
Cathay Financial Holding Co, the nation's largest life insurer, climbed NT$4.90, or 7 percent, to NT$75. Formosa Petrochemical Corp (台塑石化), the largest oil refiner by value, advanced NT$4.40, or 5.2 percent, to NT$89.40.
Taiwan Semiconductor Manufacturing Co (台積電) , the world's biggest supplier of made-to-order chips, added NT$3.20, or 5.4 percent, to NT$62.20.
The Standard & Poor's 500 Index gained the most in four years on Friday in the US after the Fed reduced the interest rate it charges banks to 5.75 percent at an unscheduled meeting.
The Fed also acknowledged for the first time that a policy shift is needed in order to limit credit market losses.
The central bank may refrain from raising interest rates at a meeting next month after the Fed unexpectedly lowered its discount rate in order to contain the subprime mortgage problem, the Chinese-language Economic Daily News reported on Saturday, citing statements by unidentified government officials.
China Steel Corp (中鋼), the nation's largest steelmaker, rose NT$2.60, or 6.9 percent, to NT$40.10.
The steelmaker's profit this year may top NT$60 billion as demand for the metal looks to be "OK" for the second half of the year, the Chinese-language Commercial Times reported, citing China Steel Corp chairman Lin Wen-yuan.
Taishin Financial Holdings Co (
Aegon NV, the second-largest Dutch insurer, may buy shares of Taishin, Taishin's chief financial officer Carol Lai (
Aegon will buy shares in Taishin by the end of this year "if possible," she said.
Hon Hai Precision Industry Co (鴻海精密), the nation's biggest electronics company, gained NT$17, or 6.9 percent, to NT$263.
BULK PURCHASE: The French chain and Hong Kong-based Dairy Farm International reached a deal covering 224 stores, which is expected to be finalized by year’s end Carrefour SA yesterday announced it would acquire Wellcome Taiwan Co (惠康百貨) for 97 million euros (US$108.33 million), and bring all the Wellcome supermarkets (頂好超市) and Jasons Market Place stores nationwide under its banner within 12 months of the deal closing. The France-based hypermarket chain reached an agreement with Hong Kong-based Dairy Farm International Holdings (牛奶國際控股), the pan-Asian retailer that launched Wellcome Taiwan in 1987. The transaction involves 199 Wellcome supermarkets, which have average sales areas of 420m2 and 25 high-end Jasons Market Place stores, which have an average sales area of 820m2, as well as a warehouse in Taoyuan, Carrefour Taiwan (家樂福)
SCATTERED: Production would be dispersed among a number of countries, which would bring an end to so-called world factories, Hon Hai chairman Young Liu said Decentralized production would be the new focus in manufacturing, Hon Hai Precision Industry Co (鴻海精密) chairman Young Liu (劉揚偉) yesterday told an online forum held by the Market Intelligence & Consulting Institute (MIC, 產業情報研究所). “The COVID-19 pandemic exerted a heavy impact on supply chains as well as production ... [production] would no longer be concentrated in solely one country, this is the end of what we used to call world factories,” Liu said during a panel discussion hosted by MIC director Victor Tsan (詹文男). As the US and China continue to dominate and sway international relations, the rest of the world is
From the customer’s perspective, car rental is a straightforward business. The only uncertainty is whether the hire company will charge you for the scratch they discover when you hand back the vehicle. Hertz Global Holdings Inc’s bankruptcy protection filing on Friday last week was a reminder that today even the simplest business models are underpinned by a lot more financial complexity than meets the eye. The proximate cause of Hertz’s demise was of course the sudden collapse in bookings caused by COVID-19 travel restrictions. The company’s monthly revenue last month fell 73 percent year-on-year, a shortfall that even the most resilient
PLANNED OUT: The government is lifting sale and export restrictions on 60% of the 20 million masks made daily, but people can still make purchases using their NHI cards Twenty thousand boxes of 50 masks each would be on sale at FamilyMart convenience stores starting tomorrow, Taiwan FamilyMart Co Ltd (全家便利商店) said yesterday. A box of 50 masks would cost NT$249 for those with FamilyMart memberships and NT$299 for those without, with no limits placed on how many boxes a person can buy, the company said. Convenience store chain operator Hi-Life International Co Ltd (萊爾富) said that it would also start selling masks from tomorrow. It has yet to announce details about prices and quantity. Hypermarket chain operator Carrefour Taiwan (家樂福) said that it would start selling packs of five