Bank adjusts forecast lower
Chang Hwa Commercial Bank (彰化銀行), the nation's sixth-largest lender by assets, is forecasting a greater-than-expected net loss for this year because of a bigger bad-loan write-off. The bank said it projects a return to profit next year.
The lender said it expects to post a net loss of about NT$26 billion (US$745 million) for 2002, compared with a loss projection of NT$20.9 billion announced in May. For next year, the bank projects NT$3.07 billion (US$57 million) in net income, it said.
Chang Hwa is writing off NT$45.8 billion of bad loans this year and NT$20 billion for next year, according to the bank.
Chunghwa to sell 13% stake
Taiwan will sell about 13 percent of Chunghwa Telecom Co (中華電信), the nation's largest phone company, after the Lunar New Year for at least NT$50 a share, a local newspaper said, citing unidentified government officials.
The auction will be similar to the government's successful sale of a 13.5 percent stake earlier this month. Bidders will be required to buy blocks of 400 million shares for NT$20 billion, the report said. That would be a slight discount to the last closing price of NT$50.50.
UMC buys into SiS
United Microelectronics Corp (UMC, 聯電) has purchased 23.23 million shares in chipset maker Silicon Integrated Systems Corp (矽品), UMC said yesterday.
The purchase, worth a total NT$625 million (US$17.9 million), brings UMC's stake in the company to 4.46 percent, UMC said in a filing to the Taiwan Stock Exchange.
SiS has said it plans to invite UMC to take three seats on its board and plans to gain shareholders' approval during a meeting scheduled for Jan. 14.
Earlier this month, UMC and SiS said they had reached a preliminary agreement to set up a technological alliance.
TSMC's Chang to leave a job
Goldman Sachs Group Inc said Morris Chang (張忠謀), chairman and chief executive officer of Taiwan Semiconductor Manu-facturing Co (台積電), will leave the board of directors of the third-largest securities firm.
Chang is leaving Goldman's board to spend more time and energy on his company, the firm said. Chang joined Goldman's board in November 2001.
In October, TSMC, the world's top supplier of made-to-order chips, said profit was half analysts' forecasts. The company's shares have declined 43 precent so far this year.
Chang's departure shrinks Goldman's board to nine, including four employee directors and five outside directors.
Earlier this month, former Goldman chairman Stephen Friedman left the firm's board to become US President George W. Bush's economic adviser, replacing Lawrence Lindsey.
Bonds rise on exports concern
The local-currency bonds surged on concern waning consumer spending in the US will slow demand for the nation's computers and other electronics exports.
``Everyone was looking at sales during Christmas. It turned out pretty bad,'' said Reming Yu, who helps manage $3 billion in bonds as chief investment officer at Prudential Securities Investment Trust Co (保誠投信). ``Right now, nobody thinks corporate spending will grow before the third quarter, so what's very important is consumer spending can't go down.''
NT dollar trades higher
The New Taiwan dollar yesterday traded higher against its US counterpart, rising NT$0.043 to close at NT$34.835 on the Taipei foreign exchange market. Turnover was US$366 million, compared with last Friday's US$367 million.
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