■ TSMC raised to `overweight'
Sunil Gupta, an analyst at Morgan Stanley, has raised Taiwan Semiconductor Manufacturing Co (台積電), to "overweight" from "equal-weight" because of strong demand for game consoles and handsets.
Results from Chartered Semiconductor Manufacturing Ltd (特許半導體) indicate strong demand for Microsoft Corp's Xbox 360 game console, while handset manufactures have provided strong guidance for the fourth quarter because of growth in emerging markets, Gupta said in a report yesterday.
Singapore-based Chartered Semiconductor, the world's third-largest customized chipmaker, posted a smaller than expected third-quarter loss on Friday and forecast its first profit in more than a year as prices rise on demand for the Xbox 360 before its North American release on Nov. 22.
Gupta said he expects Taiwan Semiconductor to report "strong" third-quarter earnings on Thursday, when the company will likely forecast better-than-expected profit in the fourth quarter.
■ Investment totals NT$867bn
The sum of the government's major investment projects totaled at NT$731.43 billion during the January to September period, the Ministry of Economic Affairs said yesterday. The initial target is to reach a total amount of NT$867 billion for the whole year, and the sum for the first nine months has accounted for 84 percent of the target, it said. Of the 1,070 major investment cases during the period, those over NT$10 billion involved companies such as AU Optronics Corp (友達光電), Nanya Technology Corp (南亞科技), and United Microelectronics Corp (聯華電子), according to the government data.
Meanwhile, the ministry said it is currently reviewing the possibilities of relaxing investment regulations to attract more overseas investors. It will send delegates abroad to solicit more foreign investment on case-by-case basis.
■ Investment rules may change
Taiwan may abolish the ceiling for Taiwanese companies investing in China if they list on the Taiwan's new "international board," the Commercial Times reported.
Taiwan's Premier Frank Hsieh(謝長廷) will suggest the change to President Chen Shui-bian (陳水扁), it said.
Currently, Taiwan's listed companies cannot invest more than 40 percent of their net assets in China.
Taiwan's Financial Supervisory Commission Chairman Kong Jaw-sheng (龔照勝) said Oct. 6 the commission plans to introduce a foreign currency-denominated stock exchange, the so-called international board, by early next year.
"For the first year of operation, we expect 10 to 20 listings of good companies," Kong said in an interview. "Within two years, we wish to have 60-80 listings; three to five years, more than 100."
■ Chinatrust, SinoPac might buy
Chinatrust Financial Holding Co (中信金控) and SinoPac Financial Holding Co (建華金控) are considering buying back shares to support their stock prices, the Economic Daily News reported. Taiwan's Financial Supervisory Commission plans to relax rules for financial companies to buy back their own shares as one of the moves to support the sluggish stock market, it said.
Chinatrust Financial is Taiwan's sixth-biggest financial services company. SinoPac Financial owns Taiwan's 10th-biggest lender.
■ NT dollar lowest in a year
The New Taiwan dollar had the lowest close in a year on speculation that global investors will take funds from Taiwan after selling the most stocks since March. It declined against the US dollar on the Taipei Foreign Exchange Monday, losing NT$0.137 to close at NT$33.770. A total of US$1.1 billion changed hands during the day's trading.
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