Shares close higher
Taiwanese shares closed up 0.99 percent yesterday, taking a cue from Wall Street’s gains following better-than-expected US jobs data, dealers said.
The weighted index rose 71.46 points to 7,224.59 on turnover of NT$124.81 billion (US$3.81 billion).
The market opened 0.55 percent higher amid optimism over a global economic recovery, and rotational buying accelerated throughout the trade to boost financial stocks on their relatively low valuations, dealers said.
Interest in the financial sector was ignited as a local report said Taiwan was pushing for China to let Taiwanese insurers hold more than the standard 50 percent in joint ventures in China, they said.
“The sector is a market laggard. It was no surprise that investors took advantage of that,” Yuanta Securities Investment Consulting (元大投顧) analyst Young Wang said.
Wang said interest also shifted to old-economy stocks from select high-tech firms that powered the broader market to jump over 7,000 points.
“Investors are watching closely how electronic heavyweights will report their August sales. The global demand is recovering but investors want more data to confirm it,” Wang said. “I expect pressure on the high-tech sector will rise over the next few sessions.”
Taiwan pushing for reform
Taiwan is pushing for China to let the nation’s insurers hold more than the standard 50 percent in China-based joint ventures, a report said yesterday.
Taipei is also seeking permission to allow its insurers to have multiple Chinese partners instead of being limited to only one each, the Chinese-language Commercial Times reported, citing unnamed sources.
If China agrees, it would mark a breakthrough for Taiwan’s insurance industry in the rapidly expanding Chinese market.
“We will be happy to have a higher stake in our joint venture if it comes true. But we haven’t heard anything,” said a spokesman with Shin Kong Financial (新光金), which runs an insurance venture with China’s Hainan Airlines (海南航空).
Two other Taiwanese companies, Cathay Financial (國泰金) and Taiwan Life (台灣人壽), have also set up joint insurance companies in China under the 50 percent rule.
The Commercial Times said Taiwan was seeking to reach a consensus with China on the insurance sector even though it was yet to sign a memorandum of understanding boosting cross-strait financial activities.
Chunghwa to boost investment
Chunghwa Telecom Co (中華電信), the nation’s biggest telecom operator, yesterday said it planned to boost shareholding in an investment venture to 89 percent for NT$759 million, paving the way for more aggressive investment overseas and at home.
Chunghwa Telecom said it planned to buy a 40 percent stake, or 80 million shares, in Chunghwa Investment Co (中華投資) from Yang Ming Marine Transport Corp (陽明海運), according to a company statement released yesterday. The transaction is scheduled to close later this quarter.
Chunghwa Telecom said it aimed to enhance mid to long-term growth by diversifying investments via Chunghwa Investment.
Over the past few years, Chunghwa Investment has invested in content providers, system integrators and IC design.
NT dollar gains
The New Taiwan dollar yesterday gained by NT$0.040 to close at NT$32.865 against the greenback on turnover of US$596 million.
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