Share prices close higher
Taiwanese share prices closed up 1.05 percent yesterday on a technical rebound led by the financial sector, after a 3.3 percent fall posted in the previous three sessions amid concerns over the global economy, dealers said.
The TAIEX rose 76.68 points to 7,330.74, after moving between 7,285.01 and 7,378.77, on turnover of NT$97.21 billion (US$3.01 billion).
Ignoring Wall Street’s continued weakness overnight, the market opened 0.43 percent higher and the momentum accelerated on strong buying in financial stocks on high hopes that Taiwanese and Chinese banks will forge closer business ties after the signing of a major trade pact with China, dealers said.
A total of 1,892 stocks closed up and 1,067 down, while 414 remained unchanged.
“The market has been speculating that banks across the Taiwan Strait will buy into each other on the basis of the trade pact,” Grand Cathay Securities (大華證券) analyst Mars Hsu said.
Yesterday morning, Bank of China (中國銀行) announced that trading of its shares was suspended on the Hong Kong Stock Exchange pending release of sensitive share price information by the bank.
“The trading suspension prompted many investors here to further speculate that the Chinese bank will announce concrete information involving potential Taiwanese partners,” Hsu said.
Bargain hunting also lifted old economy stocks.
However, Hsu said recent economic data in the US has disappointed markets worldwide and given rise to concerns over a deeper economic slowdown.
Morgan Stanley appoint Ko
Morgan Stanley appointed Wallace Ko (柯之琛), the firm’s Taiwan head of equities, as acting head of its Taiwan unit after nine-year veteran Gary Kuo (郭冠群) resigned last month.
Kuo, who joined in March 2001, was chairman at Morgan Stanley’s Taiwan unit and head of Taiwan investment banking before his departure, said Nick Footitt, a Hong Kong-based spokesman at the US bank. Kuo declined to comment.
Central bank issues CDs
The central bank issued NT$150 billion in certificates of deposit (CDs) yesterday, less than the NT$153.75 billion that matured, the monetary authority said in a statement on its Web site.
Meanwhile, the bank is set to roll out a new circulation coin with a nominal value of NT$10 to commemorate late Taiwanese democracy pioneer Chiang Wei-shui (蔣渭水) on Aug. 5. It will be the first Taiwanese commemorative coin to bear the image of a non-political figure.
“Fifty million units will be issued in the first batch,” central bank Deputy Governor Yang Chin-long (楊金龍) told a media briefing on Thursday.
NT dollar posts gain
The New Taiwan dollar advanced the most in a week on speculation investors will buy emerging-market assets after concerns over Europe’s debt crisis eased.
Gains in the currency may be curbed by central bank intervention to support exporters, said Yang Kung-yi (楊恭逸), a foreign-exchange trader at Shanghai Commercial & Savings Bank (新光銀行). The euro rose 2.4 percent yesterday against the US dollar after Spain met its target to sell 3.5 billion euros (US$4.3 billion) of notes.
“Today’s market is kind of stable,” said Taipei-based Yang. “Part of the reason is the euro’s strength. At the end of the day, the central bank comes inside to adjust the price.”
The NT dollar appreciated 0.1 percent to close at NT$32.278 against its US counterpart, paring its weekly loss to 0.3 percent. Turnover was US$665 million.
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