Stocks rose, with the TAIEX advancing to a 13-month high yesterday. Exporters such as Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) gained after a US report on factory orders for durable goods buoyed optimism of accelerating economic growth in the world's largest economy.
The TAIEX gained 57.05, or 1.1 percent, to 5,451.80, the highest since June 21 last year. August futures on the benchmark added 1.7 percent to 5,475. About two stocks gained for every one that declined.
About 6 billion shares changed hands, 39 percent above the average trading in the past three months. The value of trading was NT$146.7 billion (US$4.3 billion), 61 percent above the three-month daily average.
"More and more evidence is pointing to a healthy economic recovery in the US," said Eddie Chiu, who manages the equivalent of US$116 million for First Global Investment Trust Co's (元大投信) Hitech Fund.
"Export-oriented economies like Taiwan will benefit the most in the US recovery," he said.
Chiu's fund has gained 26 percent this year, compared with a 21 percent gain for the benchmark index. Chiu expects the TAIEX to reach 6,000 in the second half.
Taiwan Semiconductor, the world's largest maker of computer chips on a subcontracting basis that relies on the US for three- quarters of its sales, gained NT$1, or 1.8 percent, to NT$58.
United Microelectronics Corp (UMC, 聯電) gained NT$0.20, or 0.8 percent, to NT$25.
Other exporters also gained. Hon Hai Precision Industry Co (UMC,
China Development Financial Holding Corp (
China Development said the new profit forecast reflects its plans to set aside NT$16.9 billion to write off bad loans in the second half of this year. China Development in January forecast a pretax profit of NT$10.08 billion for the year.
Chunghwa Telecom Co (中華電信) gained NT$1, or 1.9 percent, to NT$52.50. The government on Friday sold an additional 1.5 percent stake in Chunghwa following a share sale in the US on July 18.
The government sold 14.5 million Chunghwa Telecom shares in the form of American depositary receipts for US$14.24 per share. Ten of the common shares are bundled as one ADR.
Cathay Financial Holding Co (國泰金控) rose NT$0.30, or 0.7 percent, to NT$42.70. Cathay Financial on Friday said second-quarter income surged more than 13-fold following its acquisition of Taiwan's 11th-biggest bank by assets. Profit rose to NT$6.5 billion from NT$486 million in the year-earlier quarter.
Hypermarket chain Carrefour Taiwan and upscale supermarket chain Mia C’bon on Saturday announced the suspension of their partnership with Jkopay Co (街口支付), one of Taiwan’s largest digital payment providers, amid a lawsuit involving its parent company. Carrefour and Mia C’bon said they would notify customers once Jkopay services are reinstated. The two retailers joined an array of other firms in suspending their partnerships with Jkopay. On Friday night, popular beverage chain TP Tea (茶湯會) also suspended its use of the platform, urging customers to opt for alternative payment methods. Another drinks brand, Guiji (龜記), on Friday said that it is up to individual
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The National Stabilization Fund (NSF, 國安基金) is to continue supporting local shares, as uncertainties in international politics and the economy could affect Taiwanese industries’ global deployment and corporate profits, as well as affect stock movement and investor confidence, the Ministry of Finance said in a statement yesterday. The NT$500 billion (US$17.1 billion) fund would remain active in the stock market as the US’ tariff measures have not yet been fully finalized, which would drive international capital flows and global supply chain restructuring, the ministry said after the a meeting of the fund’s steering committee. Along with ongoing geopolitical risks and an unfavorable
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