Shares rise 0.98%
Share prices closed 0.98 percent higher yesterday as the government bid to curb the flow of “hot money” into the country in a move aimed at bolstering investment in the stock market, dealers said.
The TAIEX rose 74.57 points to 7,668.06 on turnover of NT$101.75 billion (US$3.14 billion). Gainers outnumbered losers 1,455 to 1,029 while 299 shares remained unchanged.
The market plunged to an intra-day low of 7,555.83 points, but was pulled up near noon after the central bank said it has been keeping a close eye on foreign investors parking excessive funds in time deposit accounts.
The Financial Supervisory Commission said it was barring such activity in a move aimed at deterring foreign speculation in the NT dollar against the US dollar.
“Foreign investors have little choice but to invest their money on the local stock market,” Mars Hsu of Grand Cathay Securities (大華證券) said.
This meant a boost to big caps, which have been the main investment targets of foreign investors, he said.
Innolux arranged loan
Local flat-panel and PC monitor maker Innolux Display Corp (群創光電) wants to raise up to NT$48 billion through a syndicated loan, the Dow Jones Newswire reported yesterday, citing an unnamed company official.
Innolux, based in Miaoli County, is an affiliate of the nation’s largest electronics component supplier, Hon Hai Precision Industry Co (鴻海精密).
The panel maker will use two-thirds of the loan to fund capacity expansion of its sixth-generation flat-panel plant, the official said, adding the remainder would be alloted for working capital.
Innolux is scheduled to sign the five-year syndicated loan deal with 14 banks early next week, the official said. The interest rate on the deal has been set at less than 2 percent, the official said.
UK urges investment
Taiwanese companies should take immediate action to tap into the many business opportunities that will open up in the next year ahead of the 2012 London Olympic Games, the head of a British foreign direct investment agency said in Taipei on Tuesday.
“There is a window of opportunity there and that window is closing. So our advice to Taiwanese and other companies around the world is that they should act now rather than wait. Because if you wait, you will miss out on the opportunities,” said Michael Charlton, chief executive of Think London.
Charlton encouraged Taiwanese businesses to get involved in the 2012 London Olympics through the WTO’s Government Procurement Agreement.
The buyers and the organizing committee for the London Olympics are interested in procuring all kinds of products from Taiwanese suppliers, ranging from digital media products to merchandise such as computer equipment, sports wear and souvenirs, he said.
NT dollar gains ground
The New Taiwan dollar advanced for a sixth day on speculation a ban on foreign investors placing funds in time-deposits accounts won’t deter investors from increasing holdings of Taiwanese stocks and bonds.
The local currency gained 0.1 percent to NT$32.310 versus the greenback at the 4pm close, after earlier slipping as much as 0.2 percent, Taipei Forex Inc said.
The NT dollar has traded within a range of NT$33 per dollar and NT$32 for the past four months.
“The effect is negligible in the near term,” said Leong Wai Ho (梁偉豪), a regional economist in Singapore at Barclays Plc. “There won’t be an impact on equities so there won’t be much effect on the Taiwan dollar as well.”
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