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Taiwan shares up slightly due to falling oil prices

Taiwan shares up slightly due to falling oil prices

Taiwan share prices closed flat yesterday as profit-taking eroded early gains made on the back of Wall Street's overnight rally, dealers said.
Exporters such as Taiwan Semiconductor Manufacturing Co. climbed after crude oil prices fell by the most in six weeks, leaving consumers with more to spend on goods and services.
"Falling oil prices is a boost for consumer confidence," said Yu Reming, head of the fund management department at Entrust Investment Trust Corp., which manages US$640 million in assets. "They will have more breathing space."
Formosa Petrochemical Corp. fell after the company yesterday lowered gasoline prices for the second time this month.
The Taiex index climbed 5.59, or 0.1 percent, to close at 7,733.18 in Taipei yesterday, its highest close since September 5, 2000. Futures due in January added 0.1 percent to 7,795.
Taiwan Semiconductor gained NT$0.40, or 0.6 percent, to NT$66.40. Via Technologies Inc., Taiwan's biggest maker of personal computer integrated chipsets, jumped NT$2.35, or 6.9 percent, to NT$36.25. AU Optronics Corp., the world's third-largest LCD maker, added NT$0.20, or 0.5 percent, to NT$44.40.
Crude oil had the biggest drop in six weeks. The contract for February delivery fell 2.1 percent to US$61.10 a barrel, the biggest one-day decline since November 16. Cheaper fuel reduces companies' costs and leaves consumers with more to spend on other goods and services. Exports account for about half of Taiwan's economy.
Formosa slid NT$0.20, or 0.3 percent, to NT$69.30. Formosa cut its domestic wholesale gasoline prices by NT$0.10 a liter, the company said in a statement.
Fubon Financial Holding Co. , Taiwan's third-largest financial services company by market value, rose NT$0.10, or 0.3 percent, to NT$30.70. The Economic Daily News reported Goldman Sachs Group Inc. and Fubon may buy stakes in Chinatrust Financial Holding Co. Goldman and Fubon aren't in talks with Chinatrust, Jason Wang, Chinatrust executive vice president, said by telephone. Victor Kung, president of Fubon, also denied the report. Chinatrust, the fourth-biggest, dropped NT$0.15, or 0.6 percent, to NT$27.
Goldman intends to ally with Fubon because of concern that Taiwan's financial regulator won't allow Chinatrust to be fully controlled by foreign funds, the Economic Daily News said.
Senao International Co., a mobile phone handset distributor, slumped NT$0.75, or 2.6 percent, to NT$27.65. Chunghwa Telecom Co., Taiwan's largest telephone operator, said it will buy as much as 32.5 percent of cell-phone distributor Senao to expand its services. The company will buy Senao shares at NT$15.10 each, a 47 percent discount to Senao's closing price of NT$28.40 on Tuesday. Chunghwa was unchanged at NT$60.


Updated : 2021-07-31 05:43 GMT+08:00