Stocks rose the most in more than three years yesterday as Cathay Financial Holding Co (
"The Fed emerged as the cavalier in financial market turmoil and investors cheered by putting their money back into markets," said Yin Nai-yun, who oversees US$172 million at Prudential Securities Investment Trust Enterprise in Taipei.
The TAIEX index jumped 425.31, or 5.3 percent, to close at 8,515.60 in Taipei, its biggest gain since May 2004. The index dropped 9.4 percent last week, its worst since March 2004. All but 19 of the 651 stocks traded on the Taiwan Stock Exchange advanced yesterday. Futures due in next month surged 6.9 percent to 8,428.
PHOTO: CHANG CHIA-MING, TAIPEI TIMES
Cathay Financial Holding Co, the nation's largest life insurer, climbed NT$4.90, or 7 percent, to NT$75. Formosa Petrochemical Corp (台塑石化), the largest oil refiner by value, advanced NT$4.40, or 5.2 percent, to NT$89.40.
Taiwan Semiconductor Manufacturing Co (台積電) , the world's biggest supplier of made-to-order chips, added NT$3.20, or 5.4 percent, to NT$62.20.
The Standard & Poor's 500 Index gained the most in four years on Friday in the US after the Fed reduced the interest rate it charges banks to 5.75 percent at an unscheduled meeting.
The Fed also acknowledged for the first time that a policy shift is needed in order to limit credit market losses.
The central bank may refrain from raising interest rates at a meeting next month after the Fed unexpectedly lowered its discount rate in order to contain the subprime mortgage problem, the Chinese-language Economic Daily News reported on Saturday, citing statements by unidentified government officials.
China Steel Corp (中鋼), the nation's largest steelmaker, rose NT$2.60, or 6.9 percent, to NT$40.10.
The steelmaker's profit this year may top NT$60 billion as demand for the metal looks to be "OK" for the second half of the year, the Chinese-language Commercial Times reported, citing China Steel Corp chairman Lin Wen-yuan.
Taishin Financial Holdings Co (
Aegon NV, the second-largest Dutch insurer, may buy shares of Taishin, Taishin's chief financial officer Carol Lai (
Aegon will buy shares in Taishin by the end of this year "if possible," she said.
Hon Hai Precision Industry Co (鴻海精密), the nation's biggest electronics company, gained NT$17, or 6.9 percent, to NT$263.
Polytronics Technology Corp (聚鼎科技) yesterday announced that it is buying Henkel AG’s thermal clad dielectric material (TCLAD) business division for US$26 million as the Taiwanese firm aims to improve its technology, product portfolio and revenue performance. Polytronics, headquartered in the Hsinchu Science Park (新竹科學園區), is a supplier of protection components and heat dissipation materials. The firm entered the metallic heat-dissipation substrate market in 2007 and developed a unique solventless production process. Its board of directors approved signing an agreement with Henkel to acquire the German chemical firm’s TCLAD division in the US. The purchase includes all assets and business interests, including equipment,
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate
A Bollywood actor’s face tattooed on his arm, Sandeep Bacche’s devotion shocks few in India where stars enjoy semi-divine status, but even there the hallowed silver screen might be losing its shine to streaming services and pandemic fears. “Whenever things get better and theaters begin operations, I will watch three movies a day for sure just as a way to celebrate,” said the Mumbai rickshaw driver, who is recovering from the virus himself. However, others might not join the party. With cinemas shut for months due to a COVID-19 lockdown, and little prospect they will reopen soon, frustrated Bollywood producers have turned to