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Markets around the region rebound, boosting TAIEX

Shares closed 1.17 percent higher yesterday alongside firmer overseas markets, as companies with strong operations in China leading gains amid strong demand there, dealers said.

They said Chang Hwa Bank (彰化銀行) led financials higher on hopes that it will have its assets reassessed.

The TAIEX closed up 104.21 points at 9,031.63, having traded in a range between 8,952.88 and 9,046.51, on turnover of NT$115.39 billion (US$3.49 billion).

For the week to yesterday, the weighted index closed up 13.55 points or 0.15 percent after a 0.40 percent increase a week earlier.

Average daily turnover stood at NT$120.93 billion, compared with NT$136.65 billion a week ago.

The upswing in regional markets such as Japan, South Korea and Hong Kong encouraged investors in Taiwan to follow suit, giving a boost to Taiwanese companies -- particularly those with exposure to the China market in the run-up to holidays next month.

Reports of a possible leap in Chang Hwa's net worth generated by a reassessment of its assets created incentives for the bank.

"The Chang Hwa Bank factor triggered expectations of similar assets [reassessments] by other financial companies, boosting sentiment towards the whole segment," said Johnny Lee, a manager with President Securities Corp (統一證券).

Chang Hwa closed up NT$0.95 at NT$21.50 and Taishin Financial Holding Co (台新金控) rose NT$0.15 to NT$16.15.

"Concerns over the US Fed's decision on key fund rates on Sept. 18 and the Taiwan central bank's monetary policy on Sept. 20 will be the key factors affecting the stock market here going forward," he said.
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