TAIEX up on eurozone news
The TAIEX ended above the 7,400 point mark yesterday amid eased concerns over the debt problems in the eurozone after the European Central Bank (ECB) announced a plan to acquire government bonds from debt-ridden countries, dealers said.
As the ECB bond-buying plan aims to lower borrowing costs in the debt hit region, many investors seemed to be relieved, thinking that the financial situation in the eurozone will not deteriorate any time soon and thus further impact the world’s fragile economy, they said. Despite the upbeat mood toward the European financial situation, the gains posted by the TAIEX were capped by stiff technical resistance as the index moved closer to 7,500 points, they added.
The weighted index closed up 98.19 points, or 1.34 percent, at 7,424.91, after moving between 7,409.88 and 7,446.10, on turnover of NT$86.46 billion (US$2.90 billion).
Oil purchases increase
Taiwan purchased more crude last month to support increased output at Formosa Petrochemical Corp (台塑石化).
Shipments rose 75.2 percent from a year earlier to 26.71 million barrels last month, the Ministry of Finance said yesterday. The country’s oil bill increased 59 percent to US$2.73 billion last month, the ministry said in a statement.
Separately, Taiwan imported 1.24 million metric tonnes of liquefied natural last month for US$991 million, according to data from the Directorate General of Customs.
The amount was 6 percent higher than 1.17 million tonnes a year earlier, according to customs data.
Central bank selecting facility
The central bank said yesterday it has started a process to select a NT dollar clearing bank in China as both sides of the Taiwan Strait aim to set up a currency clearing mechanism.
The central bank said it has met with representatives from 10 Taiwanese banks that have set up branches in China and briefed them on the requirements for selection.
Last week, Taiwan and China signed a memorandum of understanding (MOU) on currency clearing to set up the mechanism amid rising economic exchanges across the Taiwan Strait. The agreement is scheduled to take effect 60 days after the signing.
Taiwan, Canada sign MOU
Taiwan and Canada signed a memorandum of understanding on technological cooperation on Thursday to mark 15 years of partnership between them in that area.
Liu Chih-kung (劉志攻), Taiwan’s representative to Canada, said the agreement represents a new milestone that will strengthen the ties between the two sides.
Over the years, the partnership between the two countries has been growing steadily, with various cooperation projects launched in fields such as biological optics, nanotechnology and bioproducts, he said.
DRAM chipmaker sells shares
Nanya Technology Co (南亞科技), the nation’s biggest DRAM chipmaker, yesterday said it has raised NT$6.46 billion by selling 380 million shares via private placement. The shares were priced at NT$1.7 each, a 24 percent discount from the reference price of NT$1.94. Nan Ya Plastics Corp (南亞塑膠) and memory chipmaker Integrated Silicon Solution Inc (矽成積體電路) were among the subscribers, according to a filing to the Taiwan Stock Exchange.
NT dollar gains ground
The New Taiwan dollar gained ground against the US dollar yesterday, adding NT$0.06 to close at NT$29.842.
Turnover totaled US$842 million during the trading session.