TAIEX rallies on EU accord
The TAIEX rallied yesterday to close at the day’s high on improved sentiment after EU leaders hammered out an agreement on a 120 billion euro (US$150 billion) stimulus package to boost the region’s economy, dealers said.
Investors were also encouraged by an EU consensus to ease repayment rules for emergency loans to ailing Spanish banks, they said.
The weighted index closed up 126.67 points, or 1.77 percent, at 7,296.28, off an early low of 7,177.59, on turnover of NT$65.47 billion (US$2.19 billion).
TWSE aims for transparency
The Taiwan Stock Exchange (TWSE) yesterday said it would launch an information disclosure platform for domestic warrant trading next month in a bid to strengthen market transparency.
The TWSE said it had entrusted academics to develop a model that can be used to calculate a wide range of trading information on warrants. The platform will also offer information on the implied volatility of a warrant and its future volatility, which is calculated based on the latest closing price, to help investors make transaction decisions, it said.
Last year, domestic warrant trading attracted an average of 35,165 investors per month, up from the 25,639 recorded in 2010. In the first five months of this year, the monthly average was 29,995.
Food show posts record deals
The annual Taipei International Food Show has generated record business through procurement meetings, despite a gloomy global economy, organizers said yesterday.
The show, which opened on Wednesday, hosted 876 procurement meetings during its first two days for 76 international buyers from 22 countries, the Taiwan External Trade Development Council (TAITRA) said.
The business generated from those meetings reached US$46.89 million, up 26.7 percent from US$37 million a year ago, TAITRA said.
The exhibition at the Taipei World Trade Center Nangang Exhibition Hall and at Exhibition Hall 1 ends today.
FSC chairman reappointed
The Executive Yuan has reappointed Financial Supervisory Commission Chairman Chen Yuh-chang (陳裕璋) and Vice Chairwoman Lee Jih-chu (李紀珠) to continue in their posts, spokesperson Hu Yu-wei (胡幼偉) said yesterday.
Chen and Lee are due to complete their term of office tomorrow.
ANZ to set up subsidiary
Australia and New Zealand Banking Group Ltd (ANZ) has gained approval to set up a subsidiary in Taiwan — the fifth to be owned by a foreign bank, the Financial Supervisory Commission said yesterday.
The ANZ subsidiary will be fully responsible for all assets and liabilities of the 18 existing branches, which employ about 1,600 people, the commission said.
ANZ opened its first branch in Taiwan in 1980 and acquired ABN AMRO Bank’s business in Taiwan in 2010.
Besides the Australia-based banking group, four other subsidiaries of foreign banks — Standard Chartered Bank, Citibank, HSBC, and DBS — have been operating in Taiwan.
NT dollar advances
The New Taiwan dollar gained ground against the US dollar yesterday, adding NT$0.056 to close at NT$29.90.
The greenback opened at the day’s high of NT$29.98 and moved to an early low of NT$29.848 before rebounding. Turnover totaled US$784 million.
Merida Industry Co (美利達) has seen signs of recovery in the US and European markets this year, as customers are gradually depleting their inventories, the bicycle maker told shareholders yesterday. Given robust growth in new orders at its Taiwanese factory, coupled with its subsidiaries’ improving performance, Merida said it remains confident about the bicycle market’s prospects and expects steady growth in its core business this year. CAUTION ON CHINA However, the company must handle the Chinese market with great caution, as sales of road bikes there have declined significantly, affecting its revenue and profitability, Merida said in a statement, adding that it would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RISING: Strong exports, and life insurance companies’ efforts to manage currency risks indicates the NT dollar would eventually pass the 29 level, an expert said The New Taiwan dollar yesterday rallied to its strongest in three years amid inflows to the nation’s stock market and broad-based weakness in the US dollar. Exporter sales of the US currency and a repatriation of funds from local asset managers also played a role, said two traders, who asked not to be identified as they were not authorized to speak publicly. State-owned banks were seen buying the greenback yesterday, but only at a moderate scale, the traders said. The local currency gained 0.77 percent, outperforming almost all of its Asian peers, to close at NT$29.165 per US dollar in Taipei trading yesterday. The
RECORD LOW: Global firms’ increased inventories, tariff disputes not yet impacting Taiwan and new graduates not yet entering the market contributed to the decrease Taiwan’s unemployment rate last month dropped to 3.3 percent, the lowest for the month in 25 years, as strong exports and resilient domestic demand boosted hiring across various sectors, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday. After seasonal adjustments, the jobless rate eased to 3.34 percent, the best performance in 24 years, suggesting a stable labor market, although a mild increase is expected with the graduation season from this month through August, the statistics agency said. “Potential shocks from tariff disputes between the US and China have yet to affect Taiwan’s job market,” Census Department Deputy Director Tan Wen-ling
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