Taiwan stocks rose 0.8 percent to a two-month closing high on Wednesday, tracking gains in regional markets, with Cathay Financial leading banks higher as concerns about a global credit crunch receded. The main TAIEX share index gained 76.82 points to 9,700.07, just a whisker off a seven-year closing high of 9,744.06 hit on July 24.
The index has staged a 20 percent rally since touching a recent low on August 17. The financial sub-index rose 2.17 percent, boosted by a 1.96 percent rise in Taiwan's top financial holding firm, Cathay Financial. Cathay said it would accept US $397 million from the government in exchange for taking over some assets of failed bank China United Trust & Investment.
Smaller rival Fubon Financial soared 6.7 percent. Turnover hit a two-month high for a second day, rising to T$215.1 billion (US $6.6 billion) from T$206.4 billion in the previous session, indicating further gains were likely. "Investors would continue to be bullish," said George Hsieh, who manages US $614 million for Capital Investment Trust. But short-term upside was limited as selling pressure had mounted at the 9,800 point level, the highest level so far this year, he said.
Acer, the world's N 3 PC vendor, rose 3.03 percent, while the electronics sub-index climbed 0.26 percent. Acer said it was extending its $710 million offer for rival Gateway Inc to allow US regulators time to complete a review of the deal.
Synnex Technology, the world's No 3 electronics distributor, fell 1.16 percent. The company forecasts annual sales will grow 20 percent in 2007 and 2008, as it aims to sell more products in the fast-growing China market.
China Airlines, Taiwan's largest carrier, climbed 0.73 percent after it replaced its chairman just over a month after of one its jets exploded after landing in Japan. Chip designer Mediatek ended up 1.64 percent after media reports said the company was setting up a Japanese unit and has already won orders from Sony.
Comments
Comments are closed.