TAIEX closes lower
Share prices closed down 0.51 percent yesterday, largely in response to losses posted by other regional markets amid concerns over the pace of the global economic recovery, dealers said.
The TAIEX fell 39.95 points to 7,664.57 after moving between 7,660.76 and 7,719.05 on turnover of NT$120.84 billion (US$3.76 billion).
The market opened up 0.12 percent, but momentum evaporated after regional markets faced selling pressure on renewed worries over the global economy, dealers said.
A total of 2,165 stocks closed up and 1,144 down, with 239 remaining unchanged.
UBS AG offers new product
UBS AG yesterday announced the launch of an Australian dollar-denominated principal-protected product with an annual coupon of 6.15 percent, to be targeted at domestic retail investors, the investment bank said.
This will be the bank’s first retail structured note, to be distributed by Fubon Life Insurance Co (富邦人壽) to policyholders. It provides full principal protection with a six-year maturity and a minimum investment sum of about NT$300,000, Thomas Fang (房東明), managing director of the bank’s equity risk management products, told a media briefing yesterday.
Slow growth in rental market
Apartment rentals in Taipei averaged a meager 5.35 percent growth over the past seven months, H&B Realty (住商不動產) said in a press statement yesterday.
Among the city’s 12 administrative districts, apartment rentals in Wanhua (萬華) saw the biggest jump of 15.44 percent this month from January, followed by a 14.55 percent rise in Wenshan (文山), the realtor added.
Rental declines, however, were observed in districts such as Songshan (松山), Daan (大安) and Nangang (南港), where properties are much-coveted and rentals are on average higher, with a drop of 0.93 percent, 4.86 percent and 9.62 percent respectively over the past seven months, it said.
The realtor said it believes measures taken by the central bank to rein in the city’s property prices will motivate potential home buyers to take up rentals.
EnTie Commercial Bank rated
Fitch Ratings said yesterday it assigned EnTie Commercial Bank (安泰銀行) a national long-term rating of “A-(twn)” and a national short-term rating of “F2(twn).” In addition, EnTie received an individual rating of “C/D” and a support rating of “5,” Fitch said in a statement.
Overall, the ratings agency offered a stable outlook on the lender’s credit ratings, the statement showed.
Fitch said EnTie’s ratings reflected adequate capitalization for its recently adopted risk profile and satisfactory profitability and liquidity.
Banks offer yuan settlements
Two Taiwanese banks filed applications on Thursday with the central bank to start providing yuan cash settlement services to Taiwan’s financial institutions, central bank officials said.
The applications, submitted by Bank of Taiwan (台灣銀行) and Mega International Commercial Bank (兆豐國際商銀), will be approved subject to a joint assessment of the central bank and the Financial Supervisory Commission, officials said.
On Tuesday, the central bank said it would authorize designated Taiwanese banks to provide yuan cash settlement services in collaboration with the Hong Kong unit of the Beijing-based Bank of China (中國銀行).
NT dollar closes up
The New Taiwan dollar rose against the US dollar yesterday, up NT$0.044 to close at NT$32.143. Turnover was US$537 million.
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