Fri, Feb 17, 2012 - Page 11 News List

[ BUSINESS BRIEFS ]

Staff Writer, with Agencies

TAIEX closes down 1.69%

The nation’s benchmark index retreated yesterday as investors turned cautious about the debt situation in Greece as European finance ministers delayed a meeting to decide on a bailout package for the country, dealers said.

Selling mounted during the trading session, with investors cutting positions in large-cap stocks as the market encountered strong technical resistance after the index had breached the 8,000-point mark in the previous session, they said.

The TAIEX closed down 135.54 points, or 1.69 percent, at 7,869.70, after moving between 7,851.62 and 8,010.50 points on turnover of NT$159.41 billion (US$5.39 billion).

TWSE unveils new measure

On Monday, the Taiwan Stock Exchange (TWSE) will launch a new measure to disclose the reference best bid/ask price during the closing session (1:25pm to 1:30pm) to reinforce information disclosure.

The exchange said the move is expected to provide investors with a reference for the highest bid price and the lowest ask price to facilitate trading in the market.

TWSE said the new measure would be supported by a feature similar to the intraday volatility interruption system, which would start whenever the reference price of certain stocks rise or fall by more than 3.5 percent of the last reference price a minute before the close (1:29pm to 1:30pm).

The orders of that stock would not be matched from 1:30pm to 1:31pm, but would be postponed for two minutes from 1:31pm to 1:33pm.

During the two-minute postponement, investors can add, modify or cancel their orders, the exchange said.

TWSE will disclose the reference bid/ask price every 20 seconds during the postponement and then match the orders at 1:33pm, it said.

Hon Hai auctions bonds

Hon Hai Precision Industry Co (鴻海), the world’s largest maker of electronics parts, is auctioning NT$9 billion of five-year bonds with a 1.34 percent yield, Dow Jones Newswires reported yesterday, citing two of the offering’s underwriters.

Hon Hai will issue the bonds next month and use the proceeds to fund its expansions in China, the report said.

FSC announces Kuo Hua plan

The Financial Supervisory Commission yesterday announced plans to introduce strategic partners to bail out loss-making Kuo Hua Life Insurance Co (國華人壽) through a public tender.

The regulator, which has placed the insurer under government receivership until August, said the effort to coordinate a takeover by state-owned Taiwan Financial Holding Co (台灣金控) failed because the two remained divided over acquisition terms.

The commission took control of the insolvent insurer in August 2009 and appointed the semi-official Insurance Stabilization Fund (保險安定基金) as its receiver.

The planned auction will not affect Kuo Hua’s operations, the commission said.

NT dollar falls

The New Taiwan dollar fell against the US dollar yesterday, declining NT$0.1 to close at NT$29.635 as traders took cues from a falling euro and dumped the local currency, dealers said.

The sell off of the NT dollar reflected rising worries over the eurozone’s debt problems after a key meeting on a bailout package for Greece was postponed, they said.

A plunge in the local bourse added downward pressure on the NT dollar, prompting traders to raise their US dollar holdings during the session, they added.

Turnover totaled US$816 million during the trading session.

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