■ UMC stock rises sharply
Shares rose sharply yesterday on Wall Street's gains overnight and after strong demand for an overseas bond sale by contract chipmaker United Microelectronics Corp (UMC, 聯電) this week. The TAIEX gained 108.62 points, or 1.8 percent, to 6,118.61, after a 1.3 percent gain on Thursday. The index has risen 3.3 percent this week. "There is little doubt that the success of UMC's overseas bond sale triggered the rally in the past two sessions," said Diana Wu, a senior sales manager at Capital Securities Co (群益證券). UMC sold US$381.4 million worth of overseas convertible bonds on Wednesday. The company was the most actively traded stock on the main board over the last two days. In yesterday's session, it rose by the daily 7 percent maximum to close at NT$21.3, after rising 1.3 percent the day before.
■ Airfreight joint venture inked
Evergreen Group (長榮集團), which controls Asia's largest container shipping company, said yesterday it plans an air cargo joint venture with China's Shanghai Airlines Co involving a total investment of 200 million yuan (US$25 million). Evergreen is expected to take a 45 percent stake of the venture -- 25 percent for its unit EVA Airways Corp (長榮航空) and 20 percent held by other subsidies, an official at EVA Airways said. Beijing is expected to authorize the project next month at the earliest, the official said. "When Shanghai Airlines wins [Beijing's] permission, we will apply for approval with the Taiwan authorities and related offices in China for the investment," the official said.
■ Chinatrust OKs resignation
Chinatrust Financial Holding Co (中信金控), Taiwan's sixth-biggest financial services company, said its board yesterday approved the resignation of its president Eric Chen (陳聖德), who is stepping down for what it described as personal reasons. Vice chairman Jeffrey Koo Jr. (辜仲諒) will take over as acting president, the company said in a statement. It didn't give details. Chinatrust in February appointed Chen, the head of its flagship bank, Chinatrust Commercial Bank (中國信託銀行), as its new president in charge of daily operations. The company plans to boost its workforce by a third this year as it expands its business, according to a statement issued on Jan. 20.
■ Lu steps onboard
Tasked with the mission to carry out the privatization of China Shipbuilding Corp (中船), Lu Feng-hai (盧峰海) took over the chairmanship of the state-run company yesterday, after leaving the same post that he held in Yang Ming Marine Transport Corp (陽明海運), Taiwan's second-largest shipping line. Lu filled the vacancy left by Hsu Chiang (徐強), who left the post in July last year. Lu graduated from National Cheng Kung University's department of transportation and communication management science in 1971, and jointed Yang Ming in the same year. During his tenure in Yang Ming, Lu introduced a new management system and created record after-tax earnings of NT$9.8 billion, or NT$4.57 per share, last year, the statement said. With Lu's skills and experience in the field, China Shipbuilding is expected to complete privatization smoothly, the ministry said.
■ NT dollar holds steady
The New Taiwan dollar maintained strength against its US counterpart, rising NT$0.029 to close at NT$33.188 on the Taipei foreign exchange market. Turnover was US$988 million, up from US$839 million the previous day.
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