Tue, Aug 30, 2011 - Page 11 News List

[ BUSINESS BRIEFS ]

Staff Writer, with Agencies

TAIEX rebounds on US rally

The TAIEX rallied across-the-board yesterday, buoyed by the rebound in US stocks on Friday, dealers said.

However, turnover shrank to below the NT$100 billion (US$3.45 billion) mark, indicating that many investors remained on the sidelines amid lingering concerns over the global economy, dealers said.

While the US Federal Reserve did not announce plans on Friday for a new round of quantitative easing as the market had expected, the gains posted on Wall Street showed investors’ optimism that the Fed would use other policy tools to maintain high liquidity levels to boost the economy, dealers said.

The TAIEX closed up 132.91 points, or 1.79 percent, at 7,578.01, after moving between 7,474.31 and 7,608.77, on turnover of NT$82.88 billion.

OSIM delays TDR issue

Singaporean massage chair maker OSIM International Ltd (傲勝國際) yesterday said it was withdrawing its proposed Taiwan depositary receipts (TDRs) issue due to “ongoing disruption in global financial markets.”

The Singapore-listed company said in a statement that on the advice of its financial adviser, Fubon Securities Co (富邦證券), it “decided to submit an application to the Taiwan Stock Exchange and Securities and Futures Bureau to withdraw the proposed TDR issue.”

OSIM International said it would re-evaluate the offer when market conditions improve.

The company said in May that it planned to raise as much as NT$1.77 billion from the TDR offer to fund expansion in Asia.

ING sells wealth, broker units

ING Groep NV agreed to sell its wealth management and securities brokerage business in Taiwan to Far Eastern International Bank (遠東國際商銀) so it could focus on mutual funds, the company said in a statement yesterday.

“ING remains active in the Taiwanese investment management market,” ING Securities Investment and Trust Co (安泰投信) CEO Ashwin Mehta said in Taipei.

About 70 people at ING Securities Co will move to Far Eastern after the sale, he said.

The two companies declined to give financial details of the deal, which is expected to be completed in the fourth quarter, according to the statement.

Hua Nan to sell 1.2bn shares

Hua Nan Financial Holdings Co (華南金控) plans to sell 1.2 billion shares, the company said in a statement to the stock exchange yesterday.

About 75 percent of the shares will be sold in a rights offer. The proceeds will be invested in its banking arm, Hua Nan Commercial Bank (華南銀行), and for expansion, the statement said.

Formosa Plastics profit up 30%

Formosa Plastics Corp (台塑), the nation’s largest maker of polyvinyl chloride and the flagship company of Formosa Plastics Group (台塑集團), reported first-half net income of NT$26.1 billion, it said in a filing to the stock exchange.

That represented growth of 30 percent from NT$20 billion a year earlier.

NT dollar rises slightly

The New Taiwan dollar rose against the US currency yesterday, adding NT$0.021 to close at NT$29.039, on demand for the local currency from foreign institutional investors looking to buy local equities, dealers said.

The greenback trended lower against most of the currencies in the region because traders were betting the US Federal Reserve would continue to ease liquidity to shore up the economy, they said.

Turnover was US$607 million.

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