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[BUSINESS BRIEFS]

Shares change little

Taiwanese shares closed little changed yesterday after investors took profits to erode early gains amid ample liquidity, dealers said.

The weighted index edged down 2.83 points or 0.04 percent to 6,734.46 on turnover of NT$190.67 billion (US$5.85 billion).

The market opened up 1.51 percent, led by the construction sector on hopes that Chinese capital will be allowed into local commercial properties, dealers said.

However, as the market moved closer to 6,900 points, profit taking emerged to take advantage of a recent strong showing by bellwether electronic stocks, dragging down the index, they said.

“Many investors seemed reluctant to keep holdings ahead of the upcoming long Dragon Boat Festival holiday,” Concord Securities (康和證券) analyst Allen Lin said.

The market will be closed on Thursday and Friday for the prolonged holiday.

Nan Shan acquires building

Nan Shan Life Insurance Co (南山人壽) yesterday acquired a 14-story financial building on Minsheng E Road for NT$8.2 billion (US$251 million), outbidding contenders including Ting Hsin International Group (頂新集團) and ING Antai Life Insurance Co (ING 安泰人壽) under Fubon Financial Holding Co (富邦金控).

The building is fully rented to companies including HP, Toshiba and auto maker BMW, the life insurer’s press statement said yesterday. The land acquisition represents the life insurer’s commitments to the local market, the statement said.

Following yesterday’s deal, Nan Shan has invested a total of NT$30 billion in local properties including the first two floors of the IBM building.

NT dollar continues climb

The NT dollar yesterday traded near the strongest level in five months on speculation improving relations with China would help attract more foreign capital.

The local currency gained for a fifth day, the longest winning streak in seven weeks, after President Ma Ying-jeou (馬英九) said that Taiwan hopes to sign an economic accord with China by next year. The local currency extended this quarter’s gains to 4 percent as exchange data showed foreign investors purchased US$1.6 billion more Taiwan shares than they sold this month as of last week.

The local currency climbed 0.2 percent to close at NT$32.626 against the greenback, from NT$32.679 last week.

Skylark agency in trouble

Skylark Travel Service (天喜旅行社), one of the country’s largest travel agencies handling tours to Japan, yesterday lost its membership in the Travel Quality Assurance Association for bouncing approximately NT$7 million in checks since last Friday.

The association said it asked the company to offer collateral worth NT$100 million last year when a similar situation arose. Last week, the company reported NT$1.5 million in bounced checks. The association then asked the agency to offer collateral again, but the company did not comply.

Another NT$6 million in checks bounced yesterday. To protect customers, the association said it would ensure that 300 travelers scheduled to travel before the end of this month could take their tours as planned, but the association could not offer guarantees to those who are scheduled to travel next month or in July, another 600 travelers.

Travelers booked for next month and July were advised to have their credit card firms cancel their transactions.

The Tourism Bureau issued a statement saying the company would be barred from trading starting today and that the company must submit a plan to improve its operations within three months.


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