Tue, Dec 08, 2009 - Page 11 News List

[BUSINESS BRIEFS]

AGENCIES

TAIEX climbs 1.63 percent

Share prices closed up 1.63 percent yesterday as investors hailed improving US jobs data, dealers said.

The TAIEX rose 124.73 points to 7,775.64 on turnover of NT$134.91 billion (US$4.19 billion).

The market opened 0.70 percent higher, vaulting the index past resistance at 7,700 points, and the momentum of large-cap stocks continued until the end of the session on optimism towards the global economic climate, dealers said.

Investors also shrugged off a setback suffered by the Chinese Nationalist Party (KMT) in Saturday’s local elections, they said.

“The election outcome had been expected by the market. The end of the vote cleared uncertainty,” Grand Cathay Securities (大華證券) analyst Mars Hsu said.

Institutional investors picked up large-cap high-tech stocks on hopes of growing global demand, dealers said.

“The buying into the bellwether electronic sector showed investors have shifted their attention back to economic fundamentals after the elections,” Hsu said.

Hon Hai targets Quanta laptops

Hon Hai Precision Industry Co (鴻海精密), the world’s biggest contract maker of electronics, plans to buy Quanta Computer Inc’s (廣達電腦) laptop unit, the United Evening News reported on Sunday without saying where it got the information from.

The companies denied the report, the Chinese-language newspaper said. Quanta’s spokeswoman Carol Hsu (許昭瑾) denied the rumor and Hon Hai spokesman Edmund Ding (丁祈安) didn’t return calls seeking comment.

Meanwhile, SinoPac Financial Holdings Co (永豐金控) said it has no intentions or plans to acquire Bank International Ningbo (寧波銀行) in China, the Taipei-based lender said in an exchange filing yesterday.

The Chinese-language Commercial Times reported SinoPac Financial aims to acquire a 51 percent stake in the Chinese bank for NT$6 billion, citing unidentified people familiar with the plan.

Formosa invests in Nanya

Formosa Plastics Group (台塑集團), Taiwan’s biggest diversified industrial company, invested a total of NT$5.42 billion in group member Nanya Technology Corp (南亞科技) through three affiliates, their exchange statements said yesterday.

Formosa Chemicals and Fibre Corp (台灣化纖) invested NT$781 million, Formosa Plastics Corp (台塑) bought NT$764 million shares, while Nan Ya Plastics Corp (南亞塑膠) invested NT$3.87 billion. They paid NT$20 apiece for Nanya Technology’s shares.

Nanya Technology, Taiwan’s biggest maker of computer-memory chips, rose by its daily limit to close at NT$23.90 on the TAIEX yesterday, before the announcement.

Wealthy investors get richer

About 70 percent of affluent Chinese investors say they became wealthier during the last six months, helped by the global stock market rally, a survey conducted by Nielsen showed.

The number of Chinese respondents in the survey who reported an increase in their net worth climbed from 46 percent in June, said Bonnie Tse, the Hong Kong-based head of wealth management for Asia Pacific at HSBC Holdings PLC, which commissioned the survey.

The MSCI Asia Pacific Index has rallied 71 percent from a five-year low on March 9 after governments worldwide cut interest rates and pledged more than US$2 trillion in stimulus since September last year.

In India, the percentage of affluent respondents who said their wealth rose climbed to 68 percent from 28 percent six months ago.

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