* Market rebounds after Wall Street gains
* KGI, Taishin Financial surge on acquisition deal
* Weekend protest could pressure market next week
(Updates indexes, adds details and quotes)
By Gina Chang
TAIPEI, May 15 (Reuters) - Taiwan stocks ended 1.96 percent
higher on Friday, tracking gains on Wall Street, with KGI
Securities <6008.TWO> surging after saying it would buy the
brokerage arm of Taishin Financial <2887.TW>.
The main TAIEX share index <.TWII> closed 124.92 points
higher at 6,489.09, recouping a near 2 percent fall in the
previous session and hovering around an eight-month high.
Turnover was active at T$164 billion ($5 billion), slightly
higher than Thursday's T$162.7 billion.
The TAIEX closed the week 1.4 percent weaker, but was still
up 47 percent since its low in March, after which global stock
markets rebounded on signs that the worst was over for the global
economy.
Shares of KGI Securities jumped by their 7 percent daily
limit and Taishin Financial advanced 5.45 percent, outperforming
a 4 percent rise on the financial sub-index <.TFNI>.
KGI Securities will pay T$29 billion for the brokerage arm of
Taishin Financial, Taiwan's No.3 financial holding firm, making
it the island's second-largest brokerage. [ID:nTP17043]
"The price is very high and could hence increase the value of
other brokerages," said Kevin Yang, a president at Paradigm Asset
Management.
The acquisition would have positive effects on the sector in
the longer term as the local brokerage industry has become too
fragmented and competitive, analysts said.
The news was also positive for loss-making Taishin, which
said it would cut its capital by 6.8 percent to improve its
financial structure. [ID:nTP351101]
The firm will hold its first-quarter investor conference
later in the day, with investors focusing on its expansion plans
in China and possible cooperation with Chinese companies.
In other financial news, local media said on Friday Shin Kong
Life, the insurance unit of Shin Kong Financial <2888.TW>, would
pay T$1.468 billion, more than double the base price, for a piece
of land in Taipei's up-and-coming Neihu district.
Shares of Shin Kong rose 4.7 percent and the construction
sub-index <.TCOI>, boosted by the deal, jumped 6.18 percent.
Shares newly added to the MSCI Taiwan Index <.MSCITW>
continued to rally. Real estate developer Farglory <5522.TW> and
touch-panel maker Wintek <2384.TW> both ended limit-up.
In its lastest regular review on Thursday, MSCI added 22
Taiwan stocks to its MSCI Taiwan Index <.MSCITW>, the biggest
increase among other global markets.
Despite the day's gain, the market could be pressured in the
short term as Taiwan's main opposition party is set to stage
protest against the government on Sunday, which would prompt
investors to stay on the sidelines, analysts said.
Shares of TSMC <2330.TW>
chip maker, rose 0.55 percent and the electronics sub-index
<.TELI> ended the session 1.55 percent higher.
A local newspaper cited Chairman Morris Chang as saying
orders at the company now stretch to August, and the utilisation
rate at its 8-inch wafer facility is now close to 90 percent.
Shares of portable PC brand Microstar <2377.TW> edged up 0.23
percent after it said it would return to profitability in the
current quarter, and expected its notebook shipments to climb
20-30 percent in 2009 from last year. [ID:nTPU001376]
--------------------TAIEX IN PERSPECTIVE--------------------
Move on day 1.96 percent
Close on day 6,489.09
2009 intraday high 6,680.97
2009 intraday low 4,164.19
All time high 12,682.41 12 FEB 1990
------------------------------------------------------------
For a table of foreign trading in Taiwan stocks, double-click
on [ID:nTP170358]
(Editing by Jonathan Hopfner)
(US$1=T$32.9)
((gina.chang@thomsonreuters.com; +886 2 2508-0815; Reuters
Messaging:gina.chang.thomsonreuters.com@reuters.com))
((If you have a query or comment on this story, send an email to
news.feedback.asia@thomsonreuters.com))
[Story not fully loaded, incomplete text]
Posts
No comments:
Post a Comment