Share prices head lower
Taiwanese share prices closed lower yesterday, with the TAIEX index falling 102.71 points, or 1.36 percent, to close at 7,426.96.
The local bourse opened at the day’s high of 7,568.42, before moving to the day’s low of 7,400.42.
Market turnover increased to NT$100. 91 billion (US$3.14 billion), up from NT$83.885 billion the previous day.
Of the eight major stock categories, only plastics and chemicals gained ground, advancing 0.2 percent.
Institutional investors sold a net NT$11.2 billion of Taiwanese shares, which included net sales of NT$8.87 billion by foreign institutional investors and Chinese qualified domestic institutional investors.
Chinatrust planning rights issue
Chinatrust Financial Holdings Co (中信金控) said yesterday it plans to raise US$1.25 billion this year for business expansion both domestically and in China.
Chinatrust is expected to raise the funds through a rights issue of 2.5 billion shares, a company official who asked not to be named said.
The company aims to set up a subsidiary in China which it hopes would turn a profit in two years, the Chinese-language Apple Daily reported yesterday, citing vice chairman Charles Lo (羅聯福).
The report said Chinatrust also wants to raise funds for its planned purchase of a 30 percent stake in insurer Nan Shan Life Insurance Co (南山人壽) for US$660 million from a Hong Kong consortium led by China Strategic Holdings Ltd (中策集團).
Banks sign loan deal
Standard Chartered Bank said yesterday it led 15 other banks on a five-year US$500 million syndicated loan signed with TCC International Ltd (台泥國際集團), a wholly owned subsidiary of Taiwan Cement Corp (台泥).
Taiwan Cement would use the funds to buy Chinese cement assets from a unit of London-listed Prosperity Minerals Holdings Ltd for HK$3.8 billion (US$489.5 million), the statement said.
Shipments may be canceled
Japan, Taiwan and South Korea may cancel the purchase of 12 liquefied natural gas shipments this year from plants in Bontang and Arun, Indonesia, the head of oil and gas utilization at Indonesia’s oil and gas regulator BPMigas said yesterday.
The three countries canceled the purchase of 22 cargoes last year and Indonesia may divert the supplies to the domestic market, Ira Miriawati said.
Furnace to begin operating
Dragon Steel Corp (中龍), a subsidiary of China Steel Corp (中鋼), will inaugurate its first blast furnace today, bringing to five the number of such facilities owned by the country’s leading steel refiner.
After the furnace starts operation, Dragon Steel’s crude steel production will reach 2.5 million tonnes a year and China Steel’s total production will increase to 12.5 million tonnes a year, officials said.
China Steel’s four furnaces were inaugurated between 1971 and 1997.
Dragon Steel is expected to build its second blast furnace next year, which will further increase China Steel’s crude steel production to 15 million tonnes a year.
NT dollar loses ground
The New Taiwan dollar lost ground against its US counterpart on the Taipei Foreign Exchange yesterday, declining NT$0.03 to close at NT$32.12.
A total of US$816 million changed hands during the trading session.
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