Taiwan stocks advanced, lead by Hua Nan Financial Holdings Co (華南金控), after the owner of the nation's fifth-largest lender by assets yesterday forecast earnings growth in the next five years as its bank unit writes off bad loans.
"Unlike electronics stocks, no more unexpected news will come out of the financial sector," said Jeremy Chang, who manages NT$840 million (US$25 million) in shares at Cathay Securities Investment Trust (國泰投信). "For the next month or so, I'm moving funds out of electronics and into financials." The TAIEX climbed 112.96, or 2 percent, to 5736.19 as about five stocks rose for each one that fell. The total value of trade was NT$94.3 billion, more than a fifth below the six-month daily average of NT$121.8 billion.
Since the index fell to its 52-week low on Oct. 3, it's surged 87 percent to its highest this year on April 22 on optimism a US economic recovery would boost overseas orders for computers, handsets and semiconductors. The TAIEX has fallen 11 percent since then on signs the recovery may fall short of expectations.
Hua Nan Financial Holdings rose NT$1.70, or 6.8 percent, to NT$26.70 after forecasting a return to profit next year after writing off NT$52.4 billion of bad loans this year. Earnings per share will rise by more than two-thirds over the next five years, it said.
The following stocks made significant gains or losses: Avision Inc (
China Airlines (
Premier Yu Shyi-kun said the government would accelerate the sale of the airline after Saturday's crash of one of its planes.
China Bills Finance Corp (
Sampo Corp (
Taiwan Glass Industrial Corp (
United World Chinese Commercial Bank (
CTB Financial Holding Co (
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