TAIEX closes lower
The TAIEX closed 0.33 percent lower yesterday amid lingering concerns over further fund outflows in the wake of institutional selling, dealers said.
The weighted index fell 29.08 points to 8,683.88 on turnover of NT$121.68 billion (US$4.14 billion).
“Investors remained wary of foreign investors’ recent moves to cut holdings in large-cap stocks in the local bourse, fearing that they will keep moving funds out of Taiwan,” Concord Securities (康和證券) analyst Allen Lin said.
The financial sector suffered the heaviest losses, ending down 1.48 percent. Construction stocks fell 1.41 percent, paper and pulp shares lost 0.55 percent, foodstuffs shed 0.48 percent and the machinery and electronics sector closed down 0.28 percent.
In the financial sector, Cathay Financial Holding Co (國泰金控) fell 1.24 percent to NT$47.90 and Yuanta Financial Holdings Co (元大金控) lost 2.14 percent to end the day at NT$20.55.
Taiwan’s rating raised
BNP Paribas said it’s raising its rating for Taiwanese stocks and lowering its recommendation on Hong Kong, Indonesia and India, given the prospects for an interest-rate increase by the US Federal Reserve, the rise in inflationary pressures and the outlook for fund flows and earnings across Asia.
Taiwan was raised to “overweight” from “neutral” while the Hong Kong and Indonesia markets were cut to “neutral” from “overweight,” according to a report by Clive McDonnell yesterday. The strategist lowered India’s stock market to “underweight” from “neutral.”
Tex-Ray, Yueda arrange deal
Tex-Ray Industrial Co Ltd (南緯), a Taiwan-based textile maker, said yesterday that Yueda Textile Group (江蘇悅達) of China has decided to take a stake in its -subsidiary in Jiangsu Province.
Tex-Ray said Yueda would take a 40 percent stake in its Chinese subsidiary through a fund-raising plan that will boost the unit’s paid-in capital to US$30 million.
After the investment, Tex-Ray will retain a 60 percent stake in the Jiangsu unit, the company said.
Bank of Taiwan signs deal
The Bank of Taiwan (台灣銀行) yesterday signed a cooperation agreement with Bank of Nanjing Co (南京銀行), the Taipei-based lender said in an e-mail statement.
Bank of Taiwan will be able to offer yuan loans to Taiwanese companies in China through the tie-up with the Chinese lender, the statement said. The two banks aim to cooperate in areas including staff training and information sharing, the statement said.
Fubon signs NT$5bn loans
Fubon Securities Co (富邦證券) signed NT$5 billion in three-year syndicated loans with nine banks including Cathay United Bank Co (國泰世華銀行), parent Fubon Financial Holding Co (富邦金控), said in a statement to the Taiwan Stock Exchange yesterday.
The funds will be used to replenish mid-term working capital, it said.
Powertec share sold
Sino-American Silicon Products Inc (中美晶) bought NT$550 million of Powertec Energy Corp (寶德能源) shares, a 14 percent stake, the Hsinchu-based Sino-American said in a statement to the stock exchange yesterday.
NT dollar trims gains
The New Taiwan dollar trimmed gains after the central bank intervened, according to two traders who declined to be identified.
The currency advanced 0.1 percent to end at NT$29.432 against its US counterpart, according to Taipei Forex Inc. The currency was 0.2 percent stronger at NT$29.407 four minutes before the close.
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
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