Taiwan Dollar Surge Impacts Cathay Financial's Per-Share Net Value Report
The New Taiwan Dollar surged significantly last Friday, marking the largest increase on record, prompting Cathay Financial to release an impact assessment for its insurance operations.
The report indicates that the currency opened at 30.91 against the US dollar, with a closing rate of 30.145, achieving a new high since 2023. This surge affects the financial insurance sector, with Cathay Financial potentially facing a profit reduction of NT$42.7 billion, leading to a per-share net value drop of NT$7.03.
According to Fubon Investment's assessment, recent volatility in the stock, bond, and forex markets poses risks to the firm's investment portfolio. Although Cathay Financial announced a cash dividend of NT$3.5 per share, reflecting a 6.4% yield, the trading environment remains challenging.
Investment advisors recommend careful risk assessment when making investment decisions.
