TAIEX rally follows Wall Street
The bourse ended above the 7,100 point mark yesterday as bargain hunters rushed to buy into large-cap stocks after taking their cue from a rally on Wall Street overnight, dealers said.
The buying reflected rising hopes that central banks from major economies will come up with further stimulus measures to boost the global economy, which has been affected by the financial crisis in Europe, they said.
However, market sentiment remained cautious ahead of the parliamentary elections in debt-burdened Greece scheduled for tomorrow amid fears that the anti-austerity camp will win the vote and possibly engineer an exit from the eurozone, they added.
The weighted index closed up 80.73 points, or 1.14 percent, at 7,155.83, on turnover of NT$91.26 billion (US$3.05 billion).
Cathay board approves takeover
The board of Cathay United Bank (國泰世華銀行), a subsidiary of Cathay Financial Holding Co (國泰金控), approved plans to acquire a 70 percent stake in Cambodia-based Singapore Banking Corp for NT$675 million (US$22.5 million) in cash.
The approval came after the lender inked an acquisition agreement two days earlier.
Mega Suzhou branch approved
Mega International Commercial Bank (兆豐國際商銀), the banking unit of state-run Mega Financial Holding Co (兆豐金控), yesterday gained approval from China to operate a branch in Suzhou, allowing the lender to tap into the Chinese market, Mega Bank said in a statement.
The lender has channeled 1 billion yuan into the Chinese branch to meet loan demand from Taiwanese firms, the statement said.
Earlier yesterday, Mega Financial shareholders gave their go-ahead to plans to distribute a NT$1 per share dividend from last year’s earnings, with NT$0.85 in cash and NT$0.15 in stock.
HannStar to cut capitalization
Local LCD panel maker HannStar Display Corp (瀚宇彩晶) yesterday received shareholders’ approval to halve its capital and improve its financial structure.
Shareholders also gave the go-ahead to sell 500 million common shares at home or overseas to strengthen its financial status.
After the capital reduction, HannStar will have capital of NT$29.3 billion.
The panel maker lost NT$520 million in the first quarter after booking a loss of NT$7.44 billion last year.
China Airlines picks new board
China Airlines Ltd’s (CAL, 中華航空) shareholders elected a new board of directors and members of an audit committee at the firm’s annual meeting yesterday.
Later, the new board members of the nation’s largest carrier re-elected Chang Chia-juch (張家祝) as chairman, with Sun Hung-hsiang (孫洪祥) continuing to serve as the company’s president.
NT dollar posts weekly gain
The New Taiwan dollar had its first weekly gain in more than a month and government bonds dropped on optimism policymakers worldwide would come up with fresh stimulus measures to combat a global economic slump.
“It looks like Taiwan’s government is prepared to take action if the situation in Europe gets out of control,” said James Wang, a debt trader at Yuanta Securities Co in Taipei. “Whether the central bank will cut rates next week is highly dependent on Greece’s election.”
The NT dollar strengthened 0.2 percent this week to NT$29.931 against its US counterpart, including a 0.1 percent, or NT$0.023, advance yesterday, according to Taipei Forex Inc.
Turnover amounted to US$700 million.