Staff writer, with agencies

Thu, Sep 20, 2012 - Page 14

TAIEX rebounds

The TAIEX made a rebound yesterday on the back of high liquidity as foreign funds kept entering the market after the US central bank further eased liquidity to boost the market, dealers said.

Buying rotated into the transportation sector after the government launched the Taoyuan Aerotropolis project, which aims to develop the area surrounding Taiwan Taoyuan International Airport, while select firms in the Apple Inc’s supply chain posted gains on record iPhone 5 pre-orders in the first 24 hours, they said.

The weighted index closed up 47.65 points, or 0.62 percent, at 7,781.91 on turnover of NT$99.94 billion (US$3.34 billion). Foreign institutional investors served as net buyers of NT$7.15 billion worth of local shares on the Taiwan Stock Exchange.

Demand for bonds strong

The central bank yesterday sold NT$35 billion of 10-year Treasury bonds amid strong demand by banks and securities houses, with the interest rate reaching 1.187 percent, which was lower than the 1.21 percent of the similar-maturity bonds it sold on June 27 and the lowest among the similar-maturity bonds in previous auctions.

The bid-to-cover ratio of the 10-year bonds sale, an indication of demand, was 2.12 of bids totaling NT$74.2 billion, the central bank said in a statement. Banks acquired 61 percent of the 10-year bonds sold yesterday and securities houses purchased 33.86 percent of the total as they are swamped with excess liquidity.

Swedes look to grow

Louise Bystrom, chief executive officer of the Swedish Chamber of Commerce in Taiwan, yesterday said the chamber has 45 members and looks forward to further growth amid growing business ties between both sides.

Bystrom said on the sidelines of a Taiwan-Sweden business council meeting that there are currently 82 Swedish companies in Taiwan, compared with only 10 about 30 years ago.

Sweden was Taiwan’s largest trade partner in Scandinavia last year, while Taiwan was Sweden’s fourth-largest partner in Asia, with bilateral trade increasing 18.4 percent to US$1.33 billion from 2010, according to government statistics.

Hua Nan seeks QFII license

Hua Nan Financial Holdings Co (華南金控) said its investment trust unit will apply for a qualified foreign institutional investor (QFII) license in China.

Hua Nan Financial said in a stock exchange filing on Tuesday that Hua Nan Investment Trust Corp (華南永昌投信) has hired Citibank’s China unit to serve as its QFII custodian to prepare and submit the documentation.

The Qualified Foreign Institutional Investor program is the main channel for foreign investors to enter China’s capital markets.

EVA wins prizes

EVA Airways Corp (EVA, 長榮航空) said on Tuesday that its latest business cabin services and advertising campaign have won prizes from an influential travel industry newspaper.

The carrier said its Royal Laurel Class business cabin won Travel Weekly’s 2012 Gold Magellan Award in the business class category, while its second-generation Hello Kitty fuselages won the Silver Award in the category of advertising and marketing campaigns.

EVA’s passenger loads have increased by up to 10 percent, while duty-free sales have increased by 3 percent to 5 percent on the routes on which the Hello Kitty jets operate, the carrier said.

NT dollar gains ground

The New Taiwan dollar gained ground against the US dollar yesterday, adding NT$0.055 to close at NT$29.405. Turnover totaled US$672 million during the session.