TAIEX rallies on EU accord
The TAIEX rallied yesterday to close at the day’s high on improved sentiment after EU leaders hammered out an agreement on a 120 billion euro (US$150 billion) stimulus package to boost the region’s economy, dealers said.
Investors were also encouraged by an EU consensus to ease repayment rules for emergency loans to ailing Spanish banks, they said.
The weighted index closed up 126.67 points, or 1.77 percent, at 7,296.28, off an early low of 7,177.59, on turnover of NT$65.47 billion (US$2.19 billion).
TWSE aims for transparency
The Taiwan Stock Exchange (TWSE) yesterday said it would launch an information disclosure platform for domestic warrant trading next month in a bid to strengthen market transparency.
The TWSE said it had entrusted academics to develop a model that can be used to calculate a wide range of trading information on warrants. The platform will also offer information on the implied volatility of a warrant and its future volatility, which is calculated based on the latest closing price, to help investors make transaction decisions, it said.
Last year, domestic warrant trading attracted an average of 35,165 investors per month, up from the 25,639 recorded in 2010. In the first five months of this year, the monthly average was 29,995.
Food show posts record deals
The annual Taipei International Food Show has generated record business through procurement meetings, despite a gloomy global economy, organizers said yesterday.
The show, which opened on Wednesday, hosted 876 procurement meetings during its first two days for 76 international buyers from 22 countries, the Taiwan External Trade Development Council (TAITRA) said.
The business generated from those meetings reached US$46.89 million, up 26.7 percent from US$37 million a year ago, TAITRA said.
The exhibition at the Taipei World Trade Center Nangang Exhibition Hall and at Exhibition Hall 1 ends today.
FSC chairman reappointed
The Executive Yuan has reappointed Financial Supervisory Commission Chairman Chen Yuh-chang (陳裕璋) and Vice Chairwoman Lee Jih-chu (李紀珠) to continue in their posts, spokesperson Hu Yu-wei (胡幼偉) said yesterday.
Chen and Lee are due to complete their term of office tomorrow.
ANZ to set up subsidiary
Australia and New Zealand Banking Group Ltd (ANZ) has gained approval to set up a subsidiary in Taiwan — the fifth to be owned by a foreign bank, the Financial Supervisory Commission said yesterday.
The ANZ subsidiary will be fully responsible for all assets and liabilities of the 18 existing branches, which employ about 1,600 people, the commission said.
ANZ opened its first branch in Taiwan in 1980 and acquired ABN AMRO Bank’s business in Taiwan in 2010.
Besides the Australia-based banking group, four other subsidiaries of foreign banks — Standard Chartered Bank, Citibank, HSBC, and DBS — have been operating in Taiwan.
NT dollar advances
The New Taiwan dollar gained ground against the US dollar yesterday, adding NT$0.056 to close at NT$29.90.
The greenback opened at the day’s high of NT$29.98 and moved to an early low of NT$29.848 before rebounding. Turnover totaled US$784 million.
SELL-OFF: Investors expect tariff-driven volatility as the local boarse reopens today, while analysts say government support and solid fundamentals would steady sentiment Local investors are bracing for a sharp market downturn today as the nation’s financial markets resume trading following a two-day closure for national holidays before the weekend, with sentiment rattled by US President Donald Trump’s sweeping tariff announcement. Trump’s unveiling of new “reciprocal tariffs” on Wednesday triggered a sell-off in global markets, with the FTSE Taiwan Index Futures — a benchmark for Taiwanese equities traded in Singapore — tumbling 9.2 percent over the past two sessions. Meanwhile, the American depositary receipts (ADRs) of Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the most heavily weighted stock on the TAIEX, plunged 13.8 percent in
A wave of stop-loss selling and panic selling hit Taiwan's stock market at its opening today, with the weighted index plunging 2,086 points — a drop of more than 9.7 percent — marking the largest intraday point and percentage loss on record. The index bottomed out at 19,212.02, while futures were locked limit-down, with more than 1,000 stocks hitting their daily drop limit. Three heavyweight stocks — Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), Hon Hai Precision Industry Co (Foxconn, 鴻海精密) and MediaTek (聯發科) — hit their limit-down prices as soon as the market opened, falling to NT$848 (US$25.54), NT$138.5 and NT$1,295 respectively. TSMC's
TARIFFS: The global ‘panic atmosphere remains strong,’ and foreign investors have continued to sell their holdings since the start of the year, the Ministry of Finance said The government yesterday authorized the activation of its NT$500 billion (US$15.15 billion) National Stabilization Fund (NSF) to prop up the local stock market after two days of sharp falls in reaction to US President Donald Trump’s new import tariffs. The Ministry of Finance said in a statement after the market close that the steering committee of the fund had been given the go-ahead to intervene in the market to bolster Taiwanese shares in a time of crisis. The fund has been authorized to use its assets “to carry out market stabilization tasks as appropriate to maintain the stability of Taiwan’s
STEEP DECLINE: Yesterday’s drop was the third-steepest in its history, the steepest being Monday’s drop in the wake of the tariff announcement on Wednesday last week Taiwanese stocks continued their heavy sell-off yesterday, as concerns over US tariffs and unwinding of leveraged bets weighed on the market. The benchmark TAIEX plunged 1,068.19 points, or 5.79 percent, to 17,391.76, notching the biggest drop among Asian peers as it hit a 15-month low. The decline came even after the government on late Tuesday authorized the NT$500 billion (US$15.2 billion) National Stabilization Fund (國安基金) to step in to buoy the market amid investors’ worries over tariffs imposed by US President Donald Trump. Yesterday’s decline was the third-steepest in its history, trailing only the declines of 2,065.87 points on Monday and
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