TAIEX closes down
Share prices pulled back yesterday in thin trade as foreign institutional investors remained off the trading floor ahead of the New Year holiday, dealers said.
While the market encountered strong resistance ahead of 7,100 points after a recent technical rebound, the NT$500 billion (US$16.5 billion) National Stabilization Fund was believed to have been used to buy stocks during the session in a bid to maintain the index above the 7,000 point mark, the dealers said.
The TAIEX closed down 28.36 points, or 0.40 percent, at 7,056.67, after moving between 7,036.92 and 7,093.47, on turnover of NT$56.11 billion.
Cathay Life to buy Taishin stake
Cathay Financial Holding Co (國泰金控) said on Tuesday its life insurance unit had agreed to buy a 3.45 percent stake in Taishin Financial Holding Co (台新金控) from private-equity fund TPG Newbridge Capital for NT$4.74 billion, a filing to the Taiwan Stock Exchange showed.
Cathay Life Insurance Co (國泰人壽), the nation’s largest insurance company by market share, would purchase 258.98 million Taishin convertible preferred shares from TPG Newbridge at NT$18.30 each, which was about 74 percent more than Taishin Financial’s closing price of NT$10.5 on Tuesday.
The deal is expected to be closed by the end of February, the filing said.
Including the share sales to Cathay Life, TPG Newbridge has sold shares in Taishin Financial worth NT$11.36 billion to various investors, cutting its stake in Taishin to 6.55 percent from 14.82 percent, Dow Jones Newswires reported yesterday, citing Taishin sources.
Delta, Hsinchu going ‘green’
Delta Electronics Inc (台達電) signed a memorandum of understanding yesterday with the Hsinchu County Government to collaborate on building an international “green” energy industrial park with a budget of NT$10 billion.
Delta said it plans to create new business opportunities for the industry by integrating several energy-saving solutions such as electric vehicles, sustainable buildings, LED lighting and solar energy in the park.
The project has been divided into two installments, with construction of the first part scheduled to begin in August at a cost of NT$5.3 billion.
Shui-Mu plans expansion
Shui-Mu International Co (阿瘦實業), the company which makes the popular “A.S.O.” and “BESO” shoes, said it intends to open more than 40 stores in both Taiwan and China next year, marking its highest expansion move in a year.
According to the Chinese-language Economic Daily News yesterday, Shui-Mu president Joseph Lo (羅榮岳) said he wanted to launch about 30 to 40 stores in Taiwan and about 10 in China next year, boosting the total number of stores in both markets to 310.
The company plans to enhance its presence in China by opening a total of 50 outlets within the next three years, from the current five shops, he said.
The shoemaker aims to grow revenues by 10 percent next year to NT$4 billion, Lo said.
NT dollar gains ground
The New Taiwan dollar gained ground against its US counterpart yesterday, adding NT$0.002 to close at NT$30.310 amid thin trading and cautious sentiment ahead of a planned bond auction in Italy, dealers said.
Buying by foreign institutional investors in the local bourse lifted demand for the local currency during the trading session, paving the way for the NT dollar to rise against the greenback, they said.