Profit-taking reverses gains
Taiwanese shares closed down 0.11 percent yesterday as profit-taking reversed early gains on Wall Street’s rally overnight, dealers said.
The TAIEX index fell 7.6 points to 6,973.28 on turnover of NT$149.4 billion (US$4.55 billion).
Losers led gainers 1,265 to 1,054, with 182 stocks unchanged.
The market opened up 0.94 percent after Wall Street rose above the 9,000 point mark for the first time since early January, but investors immediately pocketed profit to take advantage of recent gains, dealers said.
“Investors tend to buy on hopes and sell on news. It was no surprise to witness the market stage the pullback,” Capital Securities (群益證券) analyst Chen Yu-yu (陳育娛) said.
Fuel suppliers raise prices
State-run CPC Corp, Taiwan (CPC, 台灣中油) and its privately run rival Formosa Petrochemical Corp (台塑石化) announced yesterday that they would raise domestic gasoline prices by NT$0.6 a liter, effective today.
Prices for domestic diesel and alcohol-gasoline blends will also be hiked by NT$0.7 per liter to reflect rising fuel costs, the two companies said.
Capital inflows boost M1B, M2
The nation’s monetary aggregates increased last month, with M1B and M2 jumping 17.3 percent and 8.15 percent respectively, the central bank said yesterday.
The monetary regulator attributed the increase in both gauges chiefly to capital inflows over which the agency said it had relatively limited control.
Dawn Chen (陳一端), deputy chief of the central bank’s economic research department, said the pickup in M1B, which refers to currency held by the public and demand deposits, marked the fastest pace since Sept 2004.
The sharp rise in M1B also helped push up the M2 measure, which includes M1B and time deposits, Chen said.
FBHK rating to remain: S&P
Fubon Bank (Hong Kong) Ltd’s (FBHK, 富邦香港) offer on Wednesday to repurchase the so-called Lehman Brothers minibonds from investors is not expected to affect its rating at Standard & Poor’s Ratings Services, the international ratings agency said in a statement yesterday.
Under an agreement reached with Hong Kong authorities, FBHK will pay out an estimated HK$321 million (US$41 million) for the minibonds. The lender plans to pay at least 60 percent or 70 percent of the respective nominal principal value, depending on the age of customers, according to the company’s statement issued on Wednesday.
S&P said the bank needed to set aside a significant amount of provisioning for the proposed repurchase, which could undermine the bank’s standalone credit profile.
“Nevertheless, we regard FBHK as a strategically important subsidiary of Taiwan-based Fubon Financial Holding Co (富邦金控) and expect parental support to continue to underpin the rating,” S&P said in the statement.
NT dollar falls in last minute
The New Taiwan dollar fell in the final minute of trading in Taipei, erasing gains earlier this week, on speculation the central bank intervened to curb appreciation that may hurt exporters.
The NT dollar fell NT$0.153 to close at NT$32.955 against the US dollar as of 4pm, unchanged from the end of last week, Taipei Forex Inc said. It traded at NT$32.790 a minute earlier and reached NT$32.73 on Tuesday. Turnover was US$683 million.
“There was central bank buying towards the end, at NT$32.78 all the way to the NT$32.955 closing,” said Daniel Soh, an economist at Forecast Singapore Pte Ltd, citing conversations with traders.
‘SWASTICAR’: Tesla CEO Elon Musk’s close association with Donald Trump has prompted opponents to brand him a ‘Nazi’ and resulted in a dramatic drop in sales Demonstrators descended on Tesla Inc dealerships across the US, and in Europe and Canada on Saturday to protest company chief Elon Musk, who has amassed extraordinary power as a top adviser to US President Donald Trump. Waving signs with messages such as “Musk is stealing our money” and “Reclaim our country,” the protests largely took place peacefully following fiery episodes of vandalism on Tesla vehicles, dealerships and other facilities in recent weeks that US officials have denounced as terrorism. Hundreds rallied on Saturday outside the Tesla dealership in Manhattan. Some blasted Musk, the world’s richest man, while others demanded the shuttering of his
ADVERSARIES: The new list includes 11 entities in China and one in Taiwan, which is a local branch of Chinese cloud computing firm Inspur Group The US added dozens of entities to a trade blacklist on Tuesday, the US Department of Commerce said, in part to disrupt Beijing’s artificial intelligence (AI) and advanced computing capabilities. The action affects 80 entities from countries including China, the United Arab Emirates and Iran, with the commerce department citing their “activities contrary to US national security and foreign policy.” Those added to the “entity list” are restricted from obtaining US items and technologies without government authorization. “We will not allow adversaries to exploit American technology to bolster their own militaries and threaten American lives,” US Secretary of Commerce Howard Lutnick said. The entities
Minister of Finance Chuang Tsui-yun (莊翠雲) yesterday told lawmakers that she “would not speculate,” but a “response plan” has been prepared in case Taiwan is targeted by US President Donald Trump’s reciprocal tariffs, which are to be announced on Wednesday next week. The Trump administration, including US Secretary of the Treasury Scott Bessent, has said that much of the proposed reciprocal tariffs would focus on the 15 countries that have the highest trade surpluses with the US. Bessent has referred to those countries as the “dirty 15,” but has not named them. Last year, Taiwan’s US$73.9 billion trade surplus with the US
Prices of gasoline and diesel products at domestic gas stations are to fall NT$0.2 and NT$0.1 per liter respectively this week, even though international crude oil prices rose last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices continued rising last week, as the US Energy Information Administration reported a larger-than-expected drop in US commercial crude oil inventories, CPC said in a statement. Based on the company’s floating oil price formula, the cost of crude oil rose 2.38 percent last week from a week earlier, it said. News that US President Donald Trump plans a “secondary