Sat, May 29, 2010 - Page 11 News List

Business Briefs


Shares up on US rebound

Shares closed up 0.72 percent yesterday on buying triggered by a strong overnight rebound on Wall Street that pushed the Dow Jones Industrial Average over the key 10,000-point level again, dealers said.

The TAIEX closed up 52.16 points at 7,295.32, after moving between 7,271.30 and 7,364.01, on turnover of NT$101.71 billion (US$3.17 billion).

The market opened up 1.32 percent as investors took their cues from the Wall Street gains, but profit-taking emerged during the trading session that compromised the earlier gains, with the index approaching the nearest technical resistance at around 7,400 points, the dealers said.

“Investor sentiment has improved since the recovery in the last three sessions. It seems that the market has managed to regain some stability after the recent heavy losses,” TLG Asset Management (台壽保投信) analyst Arch Shih (施博元) said.

“The profit-taking seen during the trading session was just a technical reaction and a trend toward further rebounds remains in place,” he said.

Taipower bonds sell well

Taiwan Power Co (Taipower, 台電), the nation’s biggest electricity producer, increased the amount of bonds sold in an auction by almost 50 percent after demand exceeded the debt on offer.

The state-run utility sold NT$14.95 billion of bonds in three tranches, compared with a planned NT$10 billion, Clint Chou (周義岳), a company spokesman, said by phone yesterday. The auction attracted total bids of NT$35.65 billion, according to an e-mailed statement.

Proceeds will be used to help fund investment in power stations, Taipower said.

The company plans to spend NT$160 billion on upgrades and the construction of power plants and transmission lines this year, Chou said in March.

The utility has a twAAA debt rating, the highest from Taiwan Ratings Corp (中華信評), a Standard & Poor’s venture.

The company sold NT$4.5 billion of five-year notes, NT$4.45 billion of seven-year bonds and NT$6 billion of 10-year securities, Taipower added.

The five-year notes priced yesterday will pay an annual interest of 1.39 percent, the seven-year bonds 1.65 percent and the 10-year securities 1.79 percent, the company said.

Fortune Securities set for IPO

Taipei-based Fortune Securities Corp (富鑫證券), which has operated securities investment and services in Vietnam for the past three years, has recently been approved to become a publicly listed company there, a business source said on Thursday.

Fortune Securities is scheduled to be listed on the Hanoi Stock Exchange early next month, making it the 10th securities house in Vietnam to become publicly listed and the first Taiwan-invested securities company in Vietnam to become listed, according to CX Technology Corp (錩新科技).

CX Technology, the world’s largest producer of magnetic conductive components and parts for loudspeakers, is a major shareholder of Fortune Securities.

According to CX Technology, there are 104 securities firms in Vietnam, serving roughly 1 million clients nationwide.

NT dollar erases gains

The New Taiwan dollar yesterday erased earlier gains in the final minutes of trading as the central bank bought dollars to damp this week’s appreciation, said traders who declined to be identified.

The local currency rose as much as 0.7 percent to trade at NT$31.948 against its US counterpart, before closing at NT$32.175 on turnover of US$867 million.

This story has been viewed 1797 times.

Comments will be moderated. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned.

TOP top