Shares ended slightly higher yesterday led by gains in construction stocks, with the market turning cautious as the main index neared the 6,000 mark, analysts said. \nThe TAIEX ended 20.92 points, or 0.4 percent, higher at 5,970.18. \nA total of 453 stocks finished the session higher, while 193 closed lower and 175 were unchanged. Trading was valued at NT$85.43 billion (US$2.52 billion). \n"Investors are a bit cautious as the index is so close to the critical level of 6,000," said Maggie Chien, an investment consultant at Capital Investment Management Co (群益投顧). \nConstruction stocks were the best performers yesterday, up 3.1 percent as a whole. Local construction firms typically launch more new housing projects at the end of September, one of the two busiest seasons during the year. Kuoyang Construction (國揚) jumped 6.9 percent to NT$9.25, while Cathay Real Estate (國泰) gained 2.1 percent to NT$19.5. \nFinancials gained a slim 0.3 percent overall. \n"Some investors quickly pocketed their gains on financial stocks after Tuesday's rally, which offset continued buying in non-tech shares," said Yaoren Chang, an analyst at Grand Cathay Securities (大華證券). \nChang said financial stocks will be supported by expectations that the local central bank will follow the US rate hike. \nTaishin Financial Holding (台新金控) lost 1.1 percent to NT$27.9. First Financial Holding (第一金控) was down 0.4 percent at NT$25.9, after rising 4 percent in the previous session. Steel stocks jumped on hopes that global demand for steel products will continue to grow. China Steel (中鋼) rose 2.1 percent to NT$34.7.
NOT ALL GOOD: Analysts warned that other data for last month might be less rosy due to the virus and analysts expect the PMI to contract again next month Chinese factory activity saw surprise growth last month as businesses went back to work following a lengthy shutdown, but analysts said that the economy faces a challenging recovery as external demand has been devastated by the COVID-19 pandemic, while the World Bank said that growth could screech to a halt. China is slowly returning to life after months of tough restrictions aimed at containing the virus, which put millions of people into virtual house arrest and brought economic activity to a near standstill. The strict measures saw a closely watched gauge of manufacturing plunge to its lowest level on record in February,
The output of the global smartphone industry this year is to contract by 7.8 percent on an annual basis as the COVID-19 pandemic ushers in a global recession, Taipei-based market researcher TrendForce Corp (集邦科技) said in a report on Monday. The global production of smartphones is expected to fall to 1.29 billion units, as the pandemic dampens demand for consumer electronics, leading to a decline in shipments across Europe and North America, TrendForce said. With consumers delaying smartphone purchases and thereby lengthening the device replacement cycle, overall prices would suffer a setback that is expected to negatively affect the profitability of smartphone
ELECTRONICS Lite-On delays sale of unit Lite-On Technology Corp (光寶科技) yesterday said it would postpone the sale of its solid-state drives (SSD) business to Kioxia Holdings Corp, formerly known as Toshiba Memory Holdings Corp, due to disruptions amid the COVID-19 pandemic. Last year, the Taiwan-based electronics components supplier struck the deal with the Japanese firm, agreeing to sell the unit for US$165 million. Citing unfinished integration work due to the pandemic, Lite-On has deferred today’s closing date until further notice, adding that the delay would not have a negative effect on the unit’s operations. AUTO PARTS Hiroca approves dividend Automotive interior parts supplier Hiroca
ALL ABOUT STRATEGY: The company is optimistic, saying that its gross margin should increase year-on-year, but it is scaling back on its plans to expand capacity Quang Viet Enterprise Co (QVE, 廣越), which makes down jackets and garments for sportswear and outdoor brands including Adidas AG, yesterday said that revenue might drop 5 to 10 percent annually this year as some customers trimmed orders in response to the COVID-19 pandemic. That would mark its first revenue decline since 2016. Quang Viet posted record-high revenue of NT$16.26 billion (US$537.45 million) last year, up 22 percent from 2018. Down jackets made up 40 percent of it revenue last year. North Face Inc and Patagonia Inc are this year likely to reduce orders by 20 to 30 percent from a