TAIEX hits 14-month high
Share prices closed up 0.50 percent yesterday, led by the construction and financial sectors, to hit the highest level in more than 14 months, dealers said.
However, analysts said the market should have pushed higher as it was propped up by positive news including Wall Street’s rally and stabilized cross-strait ties.
The TAIEX rose 37.06 points to 7,477.30 on turnover of NT$146.76 billion (US$4.53 billion).
Foreign institutional investors were net buyers for the third consecutive day, with net buying of NT$14.3 billion in shares, up from Wednesday’s NT$11.5 billion in shares.
Gainers outnumbered losers 1,298 to 1,154, while 223 shares remained unchanged. A total of 37 stocks surged to their daily 7 percent limit, against six limit-down.
Chinatrust selling shares
Chinatrust Financial Holding Co (中信金控) plans to sell 2.5 billion shares, or a 20 percent stake, to Japan’s Sumitomo Mitsui Banking Corp and a US private equity fund for NT$44.35 billion to finance its bid for American International Group Inc’s (AIG) Taiwan unit, the Chinese-language Apple Daily reported yesterday, citing unnamed sources.
Sumitomo and the private equity firm will each take a 10 percent stake in Chinatrust and one board seat, the sources said.
Chinatrust sells insurance
Cathay Life Insurance (國泰人壽), the life insurance arm under Cathay Financial Holding Co (國泰金控), began sales of two of its life insurance products at the 100-strong outlets of Chinatrust Financial Holding Co (中信金控) yesterday.
The life insurer said in a statement that it hopes to take advantage of Chinatrust Financial’s bankassurance channels. The two firms inked an insurance partnership late last month.
Chinatrust Financial has teamed up with more than 10 life insurers, including China Life Insurance Co (中國人壽), to offer sales of traditional life insurance products, said Charlie Tseng (曾清傳), senior vice president of Chinatrust Financial’s banking product department.
It has also teamed up with Allianz Taiwan Life (安聯人壽) and Cardif Assurance Vie, Taiwan branch (法國巴黎人壽), to offer investment-linked insurance products, he said.
Tseng said the company would begin selling Shin Kong Life Insurance Co’s (新光人壽) products by the end of the year.
New mall set to open
A brand new upscale shopping mall Bella Vita, located in Taipei City’s Xinyi District (信義), is expected to have its grand opening on Monday — at least the first two floors.
Bella Vita will gradually open its remaining floors over the next month, local media reported.
Eight international luxury brands, including Bulgari, Hermes and Tod’s, have outlets on the first floor, while more than 50 popular fashion brands from Tokyo will also display their latest designs on the second floor, the reports said.
Quanta Computer Inc’s (廣達電腦) vice chairman and president C.C. Leung (梁次震) invested NT$9 billion in the European-style shopping mall and it will be managed by his wife and three daughters.
NT dollar gains
As foreign funds kept flowing in, the New Taiwan dollar was strong again against the US dollar on the Taipei Foreign Exchange yesterday, rising NT$0.082 to close at NT$32.410.
Rising Taiwanese shares kept attracting overseas funds, which has been the major driving force lifting the NT dollar and pushing down the US dollar, dealers said.
A total of US$1.49 billion changed hands during the day’s trading, up from Wednesday’s US$1.2 billion.
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