Stock market rises on acquittal of Ma Ying-jeou

Domestic stocks climbed after Chinese Nationalist Party (KMT) presidential candidate Ma Ying-jeou (馬英九) was cleared of fraud and corruption charges, enabling him to run for office and easing political uncertainty.

Ma was accused of misusing NT$11.2 million ($339,743) of city funds while he was mayor of Taipei. The Taiwan High Court ruled on appeal that he was not guilty of the charges.

"The verdict is a great relief for investors," said Tracy Chen (陳翠芝), who helps manage US$2.3 billion at PCA Securities Investment Trust Co (保誠投信) in Taipei. "Political turmoil is avoided."

futures gain

The benchmark TAIEX climbed 83.23, or 1 percent, to close at 8,396.95 in Taipei. The index gained 5.7 percent this week, its biggest weekly increase since the five days ended Aug. 24. Futures due in January added 0.8 percent. The index has risen 7.3 percent so far this year, compared with a 19 percent advance last year.

Farglory Land Development Co (遠雄建設) and Formosa International Hotels Corp (晶華酒店) led the advance among companies that provide products and services for domestic consumers.

Farglory, the nation's biggest construction company by market value, climbed NT$3.50, or 4.8 percent, to NT$77. Cathay Real Estate Development Co (國泰建設), the second-largest, gained NT$0.35, or 2.4 percent, to NT$15.

A measure of 32 property developers rose 5.3 percent, the second-biggest gainer among 28 industry groups after glassmakers. Taiwan Glass Industrial Corp (台灣玻璃工業), the island's biggest maker of the building material, advanced NT$2.10, or 6.4 percent, to NT$34.85.

Formosa International, the nation's largest hotel operator, rose NT$10, or 3.6 percent, to NT$290. Uni-President Enterprises Corp (統一企業), the biggest local food maker, gained NT$1.35, or 3.3 percent, to NT$42.35. Great Wall Enterprise Co (大成長城企業), the nation's second-largest livestock breeder, advanced NT$1.45, or 4.4 percent, to NT$34.45.

financials

In the financial segment, Taishin Financial Holding Co. (台新金控) slipped NT$0.30, or 2.3 percent, to NT$13. The lender said on Thursday it planned to offer 1.3 new shares for each Chang Hwa Commercial Bank (彰化銀行) share as part of a merger that would create the nation's second-largest financial holding company by assets.

Taishin's board approved the offer and the proposed exchange ratio is pending consultation with Chang Hwa, Taishin said in a filing to the stock exchange yesterday.

Chang Hwa rose NT$0.35, or 2 percent, to NT$17.60.