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Taiwan shares close at over two-year high on financial shares

Taiwan shares close at over two-year high on financial shares

Taipei, Dec. 30 (CNA) Shares in Taiwan closed at their highest level in more than two years, with financial stocks leading the rally on the sector's positive outlook, dealers said. The Taiwan stock exchange's benchmark index closed up 88.39 points, or 1.03 percent, at the day's high of 8,623.43 on turnover of NT$87.64 billion (US$2.93 billion), after opening at a low of 8,552.13. Financial stocks posted major gains during the session, and the sector's sub-index closed 1.73 percent higher. Daniel Huang, an analyst with Capital Investment Management Corp., said several financial holding companies increased their equity holdings recently and were likely to profit as the weighted index reached its highest level since Aug. 2, 2011. Companies including Cathay Financial Holding Co. and Fubon Financial Holding Co., which have strong insurance units, are also expected to benefit from higher United States Treasury bond yields, Huang added. Mega Financial Holding Co. and CTBC Financial Holding Co., which have big foreign currency loan operations, are set to benefit from higher U.S. interest rates following the Federal Reserve's plan to scale back its monetary stimulus scheme announced earlier in the month, he said. Yuanta Financial Holding Co. rose 4.96 percent to NT$18, while Cathay and Fubon closed 2.65 percent and 1.75 percent higher at NT$48.45 and NT$43.70, respectively. CTBC closed 1.5 percent higher at NT$20.30, and Mega climbed 1 percent to end at NT$25.15. Meanwhile, shares of several companies in the solar power sector, which have seen improved business since the recent price hike of solar cells, continued their upward trend on buying from local investors. Silicon wafer supplier Green Energy Technology surged 6.27 percent to NT$30.50, after institutional investors said the company has received several orders with a unit price of US$1 this month. The strong demand is likely to help the company post a positive gross margin, dealers said. Solar cell and module manufacturer Neo Solar Power Corp. rose by the daily maximum of 7 percent to end at NT$41.20. Meanwhile, Cayman Islands-registered TOPBI International Holdings Limited, which designs and sells children's clothes in China, launched this year's last share listing on the Taiwan stock exchange Monday. Its shares closed at NT$211.50, 79.24 percent higher from the offering price of NT$118. The local bourse's 7 percent daily limit does not apply to stocks in their first five days of trading. The company sells clothes under the TOPbi brand through over 1,000 stores of contract distributors. It posted sales of NT$2.79 billion, net after tax income of NT$369 million and earnings per share of NT$8.21 in 2012. (By Jackson Chang, Maranda Hsu and Kay Liu)


Updated : 2021-09-21 17:05 GMT+08:00