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Taiwan shares end up, led by financial sector

Taiwan shares end up, led by financial sector

Taipei, May 27 (CNA) Shares in Taiwan closed higher Wednesday as buying rotated to the financial sector, enabling the broader market to extend its gains from a session earlier, dealers said. Financial heavyweights led the gains after CTBC Financial Holding Co. (???) announced that subsidiary CTBC Bank (???) will acquire a 100 percent stake in China CITIC Bank International Ltd.
Smartphone camera lens maker Largan Precision Co. also showed strength to give additional support to the broader market, they said. The weighted index on the Taiwan Stock Exchange ended up 24.13 points, or 0.24 percent, at 9,693.54, after moving between 9,648.71 and 9,710.29, on turnover of NT$100.8 billion (US$3.28 billion). The market opened down 0.94 points and had a topsy-turvy first 90 minutes before buying in the financial sector accelerated to push the index above the 9,700-point mark. The momentum remained until a slight retreat at the end of the session, dealers said. "The expanded trading volume reflected the strong interest in the financial sector as investors seized on the lead of CTBC Financial's acquisition plan," Mega International Investment Services Corp. analyst Alex Huang said. The financial sub-index ended up 1.39 percent. CTBC Financial rose 4.59 percent to close at NT$23.95, with 107.17 million shares changing hands, after the company said its wholly owned subsidiary CTBC Bank will acquire a 100 percent stake in China CITIC Bank International for NT$11.67 billion. In turn, China CITIC Bank International's parent China CITIC Bank Corp. will take a 3.8 percent stake in CTBC Bank through a private placement. China CITIC Bank Corp. is under the corporate umbrella CITIC Group, a financial giant on the mainland. "These deals showed CTBC Financial's ambitions to penetrate the huge China market. By partnering with CITIC Group, CTBC Financial is expected to move ahead quickly in the China market," Huang said. Buying also spread to other financial large-cap stocks. Fubon Financial Holding Co. (???) added 2.05 percent to close at NT$64.70. Shin Kong Financial Holding Co. (???) rose 3.06 percent to end at NT$10.10 after the company announced it would buy back up to 200 million shares to support its share price. In the electronics sector, Largan gained 1.59 percent to close at NT$3,515.00 amid optimism that it will see an increase in orders from Apple Inc., while flat panel maker AU Optronics Corp. (??) rose 2.40 percent to end at NT$17.10 on hopes of more shipments of ultra-high definition displays. "Despite the gains, the local equity market remained in consolidation mode as investors fear that once the U.S. Federal Reserve kicks off an interest rate hike cycle, global equity markets will suffer," Huang said. Huang said the local bourse is expected to move between 9,500 and 9,800 points in the near term. (By Frances Huang)


Updated : 2021-09-29 03:56 GMT+08:00