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Mega Financial declines; Taiex follows it down

Mega Financial declines; Taiex follows it down

Taiwan's Taiex index fell yesterday, snapping a three-day gain. Mega Financial Holding Co., Taiwan's second-largest financial company, dropped after Chinatrust Financial Holding Co. said it plans to sell a stake in the company.
"Fear of selling pressure will deter investors from adding the stock in the near term," said Barro Liao, who helps manage US$2.7 billion at PCA Securities Investment Trust Co. in Taipei.
Far Eastern International Bank advanced after the Commercial Times said ABN Amro Holding NV, the largest Dutch bank, may buy a 51 percent stake in the Taiwanese lender.
The index slid 11.77, or 0.2 percent, to close at 7923.77 in Taipei. The measure climbed 1.2 percent in the past three days. About two stocks declined for each that gained. Futures due in February fell 0.2 percent to 7975.
Mega falls, Far Eastern rises
Mega Financial declined NT$0.45, or 1.9 percent, to NT$23.10. Chinatrust, Taiwan's fourth-biggest financial services company by value, fell US$0.25, or 0.9 percent, to NT$28.20.
Chinatrust said it plans to sell a 3.9 percent stake in Mega, valued at NT$10.36 billion (US$316 million), as requested by the Taiwan government because Chinatrust misused funds to buy the 440 million shares.
Far Eastern surged NT$1.25, or 6.9 percent, to NT$19.40. ABN Amro may buy 51 percent in the Taiwan bank for US$800 million, at NT$25 a share, the Commercial Times reported, without citing anyone. Both parties are close to signing an agreement, the report said.
"We don't comment on market rumors," Edward Lee, a Taipei-based spokesman at ABN Amro, said by phone yesterday. Far Eastern spokesman Thomas Chou wasn't immediately available for comment.
Far Eastern, based in Taipei, has 35 outlets on the island, according to its Web site.
"The deal would mean foreign investors are looking for good value companies in Taiwan," PCA Securities' Liao said. "The move will boost investor confidence in Taiwan."
Inotera Memories Inc. rose NT$0.05, or 0.1 percent, to NT$37.80. Fourth-quarter profit surged more than threefold to NT$4.89 billion from a year earlier. Inotera's shipments in the fourth quarter rose 5 percent from the third. Shipments for 2007 may climb 70 percent from a year earlier, Inotera President Charles Kau said. The company posted a net profit of NT$5.43 a share in 2006, making it the most profitable Taiwanese maker of computer-memory chips on a per share basis.


Updated : 2021-05-07 22:18 GMT+08:00