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Market Summary

Taiex piggybacks Wall Street to four-month high

Market Summary

Taiwan's stocks rose to highest in more than four months. Exporters such as Hon Hai Precision Industry Co. gained after the Federal Reserve acknowledged a U.S. housing slump may prompt it to cut interest rates next year.
The Taiex index rose 122.26, or 1.8 percent, to 6997.24 at the 1:30 p.m. close in Taipei, its highest since May 19. The measure has added 1.7 percent this week. About three stocks advanced for each that declined yesterday. Futures due in October climbed 2.1 percent to 7012.
Hon Hai, Taiwan's largest electronics company by sales, rose NT$7, or 3.4 percent, to NT$212.
Hsinchu International Bank, which received a general offer from Standard Chartered Plc to take control of the company, added NT$1.45, or 6.4 percent, to NT$24.20. Hsinchu was the most active stock by both volume and value, with more than 287 million shares worth NT$7 billion changing hands.
Standard Chartered posted a front-page newspaper advertisement in the Taipei-based China Times, Commercial Times, and the United Daily News today saying it will not extend its general offer beyond October 31 and it will not buy any Hsinchu shares for more than the NT$24.50 it has already offered.
The London-based lender said it must receive agreement from Hsinchu shareholders representing 51 percent or more of the Taiwan bank's shares, or its offer will not be validated.
n Siemens halts Benq payments
Siemens AG halted planned payments of 100 million euros (US$127 million) to Benq Corp. after the Taiwanese company stopped funding the German mobile phone unit it acquired from Siemens last year, Sueddeutsche Zeitung said, citing Chief Executive Officer Klaus Kleinfeld.
Outstanding payments of about 100 million euros will be deposited on an escrow account, the German newspaper reported. Another 50 million euros will be transferred to Benq's German handset unit, which filed for insolvency protection last week.
Benq, Taiwan's biggest mobile-phone maker, last week said it would stop funding the German unit less. Benq's approach in the matter is "condemnable" and Siemens will help workers as much as "we can," Kleinfeld said earlier this week. BenQ was down NT$0.70 at NT$16.80 yesterday.
Siemens, Europe's biggest engineering company, said on October 2 it's reviewing whether to pay the outstanding 150 million euros from the Benq deal to the Taiwanese holding company or the German unit.


Updated : 2021-04-14 21:44 GMT+08:00