Fri, Sep 07, 2007 - Page 11 News List

Business Briefs

STAFF WRITER , WITH AGENCIES

TAIEX rises 103.23 points

Shares rose yesterday as investors hunted for bargains after earlier price declines.

The TAIEX rose 103.23 points, or 1.2 percent, to 9,017.08, on turnover of NT$131.34 billion (US$3.98 billion).

Risers led decliners 976 to 712, with 257 stocks unchanged.

The market overcame a fall to 8,841.64 after the start of trading with mutual funds and foreign investors being the main players.

Shares are likely to consolidate in the range of 8,800 to 9,000 today, Taiwan International Securities Corp's (金鼎證券) Cecelia Lu said.

"There's still a lack of confidence in the market so traders are taking profit and then bargain hunting in very weak volume," Lu said.

The market may only move sustainably higher if volume picks up, she said.

Taiwan Mobile increases holding

Taiwan Mobile Co (台灣大哥大), the nation's second-biggest telecom operator, said yesterday it has increased its holding of the fixed-line company to 86 percent in a deal worth NT$735.37 million.

Taiwan Mobile said its fully owned subsidiary has bought 89.08 million shares at a price between NT$7.8 and NT$8.3 per share of Taiwan Fixed Network Corp (台灣固網).

Yesterday, local telecom equipment maker Tecom Co (東訊) said it would sell 55.3 million shares of Taiwan Fixed to Taiwan Mobile for approximately NT$459 million.

In late April, Taiwan Mobile's board approved the proposal to buy additional 1.03 billion Taiwan Fixed shares at maximum NT$8.55 billion after having 73.9 percent stakes.

FSC okays Taitung takeover

The Financial Supervisory Commission (FSC) gave the go-ahead yesterday to ABN Amro Bank NV's proposal to take over debt-ridden Taitung Business Bank (台東企銀).

The deal is scheduled to close on Sept. 22. After the acquisition, ABN Amro will have a total of 37 outlets throughout the nation, up from five.

In June, ABN Amro won the bid in an auction of Taitung Business for NT$6.9 billion.

New Okinawa, Cebu routes

Mandarin Airlines, a subsidiary of China Airlines, will operate two more international charter routes -- Kaohsiung-Okinawa and Kaohsiung-Cebu -- from next Tuesday and next Thursday respectively, a spokesman for the carrier said yesterday.

The maiden Okinawa flight will depart Kaohsiung at 6:40pm and arrive in Okinawa at 9:10pm. Each of its first 80 passengers will be given an aircraft miniature as a souvenir.

The Cebu flight will depart Kaohsiung at 11am and arrive in Cebu at 1:20pm on Thursday. The flight will have one round trip every Thursday and Sunday, the spokesman said, adding that the first is already fully booked.

Ten-year bonds fall

Taiwan's 10-year bonds fell as inflation accelerated, eroding the value of debt's fixed income. The currency was little changed.

Ten-year yields climbed for a second day after the statistics bureau said yesterday consumer prices rose 1.59 percent year-on-year last month, almost double the 0.8 percent median estimate in a Bloomberg News survey of 17 economists. Prices declined 0.34 percent in July.

The yield on the benchmark 1 7/8 percent bond maturing March 2017 gained 1.3 basis points, or 0.013 percentage point, to close at 2.499 percent on the GRETAI Securities Market. Its price fell 0.1008, or NT$100.8 per NT$100,000 face amount, to 94.7666.

The New Taiwan dollar was little changed at NT$33.048 against the US currency, Taipei Forex Inc said.

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