Shares close up 1.22 percent
Taiwanese shares closed up 1.22 percent yesterday as concerns eased over Dubai’s debt crisis after the United Arab Emirates’ central bank moved to offer support, dealers said.
The weighted index rose 91.30 points to 7,582.21 on turnover of NT$95.46 billion (US$2.96 billion).
The market opened 1.23 percent higher after Friday’s 3.21 percent dive on a key Dubai state-owned firm’s request for a debt repayment extension, and the momentum continued until the end of the session, dealers said.
“In line with European markets, investors here jumped onto the wagon again with fears over Dubai’s problems fading,” President Securities (統一證券) analyst Steven Huang said.
However, daily turnover failed to expand as the index went up, Huang said, adding: “The buying was not strong enough to boost large cap stocks and recoup most of the losses Friday.”
“After a recent strong showing, most stocks remain expensive. Many investors are reluctant to chase prices on fears of pressure at around 7,700 points,” Huang said.
Bank writes down securities
Chang Hwa Commercial Bank (彰銀) said in a filing to the Taiwan stock exchange yesterday that it has written down NT$137 million in Saudi Arabian securities.
Meanwhile, China Development Financial Holding Co (開發金) said in a filing that it plans to sell as much as NT$6 billion in corporate bonds to repay bank loans.
Semiconductor sales rise
Global semiconductor sales rose 5.1 percent in October from the previous month on higher demand because of the holiday season, the Semiconductor Industry Association said.
Total sales advanced to US$21.7 billion in October from US$20.6 billion in September, the San Jose, California-based association said in a Business Wire statement yesterday.
“October is historically a strong month for the semiconductor industry,” said George Scalise, president of the association.
On Nov. 5, the SIA said global chip sales this year will drop 11.6 percent compared with its June prediction of a 21 percent decline. The association said sales would grow 10.2 percent next year.
Shin Kong Life buys building
Shin Kong Life Insurance Co (新光人壽), a subsidiary of Shin Kong Financial Holding Co (新光金控), yesterday acquired a Neihu-based office building for nearly NT$3 billion from Taiwan Life Asset Management Co (台壽保投信).
The closing price represented a 30 percent premium on the property’s NT$2.32 billion floor price at yesterday’s auction, adviser to the deal DTZ (戴德梁行) said in a statement.
The realtor said the 11-story property, which sits on a 997 ping (3,300m²) plot of land, has 8,411 ping of floor space.
NT dollar gains ground
The New Taiwan dollar gained the most in two months after Asian stocks rallied on easing concern about a possible debt default by Dubai World.
“The Dubai World event seems to be less of a concern,” said Albert Lee, a fixed-income trader in Taipei at Cathay United Bank Co (國泰世華銀).
“Taiwan’s dollar is appreciating. All Asian markets are doing the same thing,” Lee said.
The NT dollar rose 0.5 percent to close at NT$32.185 versus the greenback — the biggest gain since Sept. 30 — on turnover of US$539 million.
The currency may trade between NT$32.2 and NT$32.5 this week, Lee predicted.
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