TAIEX closes under 9,000
The benchmark TAIEX failed to close above the 9,000-point mark yesterday despite soaring past it in morning trade, with financial stocks rising on expectation of closer financial ties between Taiwan and China.
The TAIEX shed 18.68 points, or 0.2 percent, to end at the day’s low of 8,950.75, down from the day’s high of 9,037.09, on turnover of NT$101.593 billion (US$3.52 billion).
Financial stocks opened with an increase of more than 2 percent and maintained a rise of about 1.2 percent during midday trade before ending the day 1 percent higher.
Cathay Financial Holdings Co (國泰金控), Taiwan’s largest financial services provider, saw its shares jump 1.59 percent to close at NT$48.05.
Fubon Financial Holding Co (富邦金控), Taiwan’s second-largest financial services provider, shot up 2.20 percent to close at NT$41.80.
The gains came amid optimism that cross-strait banking ties will be further liberalized as a result of a visit by China’ s top financial regulator to Taiwan this week.
Chinatrust approves payout
Chinatrust Financial Holding Co (中信金控) yesterday said its board approved to distribute cash dividends of NT$0.73 per share and stock dividends of NT$0.72 a share.
The proposal will be subject to discussion during the financial service provider’s annual shareholders’ meeting scheduled for June 10.
Chinatrust Financial said the board of its banking subsidiary Chinatrust Commercial Bank (中國信託) okayed the plan to issue 26.81 million shares via a rights issue in order to boost its capital scale.
Ruen Chen submits documents
Ruen Chen Investment Holding Co (潤成投資) submitted yesterday additional documents for its application to buy American International Group Inc’s local life unit, the Financial Supervisory Commission said in a statement on its Web site.
The commission last month asked Ruen Chen to provide more documents for a second time for its application to buy Nan Shan Life Insurance Co (南山人壽).
Kuozui holds production target
Kuozui Motors Ltd (國瑞汽車), a local assembly partner of Toyota Motor Corp, said yesterday it is maintaining its production target for this year despite a sharp fall in parts availability because of Japan’s shattered supply chain in the wake of the devastating March 11 earthquake and tsunami.
The 28-year-old company is eyeing an annual production of 150,000 vehicles this year. The company produced 122,000 units last year.
Lin Yung-yu (林永裕), a senior executive with the company, said the shortage of component supplies from Japan should only have a limited overall impact on Kuozui’s production for the whole year.
NT dollar stays unchanged
The New Taiwan dollar traded near a two-month high on speculation global funds will add to holdings of the nation’s higher-yielding assets as the US Federal Reserve keeps interest rates near zero.
The US Federal Open Market Committee will hold its benchmark rate in a range of zero to 0.25 percent when it meets tomorrow, according to all 80 economists surveyed by Bloomberg.
“There’s anticipated continued dovishness from the Federal Reserve,” said David Cohen, a Singapore-based economist at Action Economics LLC. “That will continue to be a drag on the [US] dollar and thus Asian currencies have been strengthening.”
The NT dollar was unchanged at NT$28.930 against its US counterpart as of the 4pm local close, according to Taipei Forex Inc.
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