■ Bargain hunters boost stocks
Shares ended higher yesterday led by bargain-hunting in technology companies that reported good results for the second quarter or predicted a positive outlook for the third. The TAIEX closed up 48.39 points, or 0.8 percent, to 6,375.64. "Companies that are expected to report decent second-quarter earnings or have given a rosy second-half outlook were especially favored," said Stanley Chou, a manager at Barits Investment Service. Shares in the world's two largest contract chipmakers, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and United Microelectronics Corp (UMC, 聯電), rose on buying by institutional investors, Chou said. TSMC added 1.5 percent to NT$53.90 while UMC gained 1.1 percent to NT$22.75. Mobile phone companies continued to rise on hopes the launch of third-generation services in Taiwan will boost demand for mobile handsets in the next few quarters, analysts said. Compal Communications Inc (華寶通訊), whose largest client is Motorola, jumped by the daily limit of 7 percent to NT$117.5. Wistron Corp (緯創), which makes the X-Box game console for Microsoft, ended 7 percent higher at NT$29.95. "Expectations of rising orders from Microsoft in the second half triggered strong buying in the stock," Chou said.
■ Chinese offered local credit
Qualified Chinese people are now allowed to apply for and use in Taiwan credit cards issued by local financial institutions, which took effect last month, in response to a recommendation made by the European Chamber of Commerce Taipei, the Financial Supervisory Commission said yesterday. Chinese professionals and Chinese expatriates of multinational companies who are granted a stay exceeding six months in Taiwan are now eligible to apply for credit cards in Taiwan to the financial institutions in which they have opened NT-dollar bank accounts, the commission's spokesman Lin Chung-cheng (林忠正) said yesterday. The commission made the decision last month after consulting with Mainland Affairs Council in late May.
■ Fubon denies joint bid
Fubon Financial Holding Co (富邦金控) may team up with Singapore's state-owned investment company, Temasek Holdings, to bid for Taiwan Business Bank (台灣企銀), as the government wants to sell the entire bank to a buyer in late September or early October, a Chinese-language newspaper reported yesterday, without citing sources. Fubon Financial spokesman Victor Kung (龔天行) denied his firm is seeking to partner with Temasek. But he wouldn't rule out the possibility of Fubon Financial working with other companies to bid for government-controlled banks, the report said.
■ Walsin Lihwa plans China plant
Walsin Lihwa Corp (華新麗華), a local electrical copper wire supplier, is expected to increase production capacity by about 30 percent to 450,000 tonnes through the construction of a 100,000 tonne-per-year plant in China, Reuters reported yesterday, citing a company statement. The new plant will be located in Nanjing and is scheduled for completion next year, the company said, without elaborating on the investment value.
■ NT dollar advances
The New Taiwan dollar turned stronger against its US counterpart yesterday, advancing NT$0.013 to close at NT$31.953 on the Taipei foreign exchange market. Turnover was US$711 million, compared with US$805 million the previous day.
Polytronics Technology Corp (聚鼎科技) yesterday announced that it is buying Henkel AG’s thermal clad dielectric material (TCLAD) business division for US$26 million as the Taiwanese firm aims to improve its technology, product portfolio and revenue performance. Polytronics, headquartered in the Hsinchu Science Park (新竹科學園區), is a supplier of protection components and heat dissipation materials. The firm entered the metallic heat-dissipation substrate market in 2007 and developed a unique solventless production process. Its board of directors approved signing an agreement with Henkel to acquire the German chemical firm’s TCLAD division in the US. The purchase includes all assets and business interests, including equipment,
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate
A Bollywood actor’s face tattooed on his arm, Sandeep Bacche’s devotion shocks few in India where stars enjoy semi-divine status, but even there the hallowed silver screen might be losing its shine to streaming services and pandemic fears. “Whenever things get better and theaters begin operations, I will watch three movies a day for sure just as a way to celebrate,” said the Mumbai rickshaw driver, who is recovering from the virus himself. However, others might not join the party. With cinemas shut for months due to a COVID-19 lockdown, and little prospect they will reopen soon, frustrated Bollywood producers have turned to