Wed, Sep 12, 2007 - Page 11 News List

Business Briefs

STAFF WRITER , WITH AGENCIES

Shares up on deal-seeking

Shares closed 0.73 percent higher yesterday as bargain-hunters dominated trade, with Hon Hai Precision Industry Co (鴻海精密) and MediaTek Inc (聯發科技) in focus, dealers said.

Wall Street's lackluster showing overnight provided no lead, so the market focused on local factors and specific news on individual companies, they said.

The TAIEX closed up 65.54 points at 9,003.12, having traded in a range between 8,953.37 and 9,017.30. Turnover was NT$128.92 billion (US$3.91 billion).

Risers led decliners 984 to 716, with 278 stocks unchanged.

MediaTek closed flat at NT$600, after late profit-taking capped the early rally spurred by its decision to acquire the cell chip arm of US-based Analog Devices Inc.

Hon Hai rallied NT$6.50 to NT$242.50 after the company announced that its parent sales last month surged to NT$100.37 billion from NT$71.43 billion a year earlier.

Hon Hai income growth up

Hon Hai Precision Industry Co (鴻海精密), the world's biggest electronics manufacturing service provider, yesterday posted 32 percent annual growth in net income for the first six months of this year.

Net income amounted to NT$32.2 billion in the six months ended June 30, compared with NT$23.76 billion a year earlier, Hon Hai said in a statement released yesterday.

"Results for the first half were as expected and we continue to see regular seasonality," said company spokesman Edmund Ding (丁祈安).

More firms invest overseas

During the first half of this year, 861 companies listed in Taiwan invested in China, the Financial Supervisory Commission said in a statement yesterday.

This figure was 10 higher than the previous six-month period, the commission said.

The listed companies include those firms trading shares on the Taiwan Stock Exchange and on the GRETAI Securities Market.

In terms of the size of investment, the listed companies' aggregated investment in China totaled NT$667.1 billion (US$20.17 billion) during the first six months of the year, increasing NT$46.3 billion from the end of last year, the commission said.

In addition, 950 listed companies invested NT$1.3 trillion overseas in countries other than China during the first six months, compared with NT$1.23 trillion by 940 listed companies in the previous period, it said.

ASE mulls subsidiary IPO

The biggest chip packager in the world, Advanced Semiconductor Engineering Inc (ASE, 日月光半導體), yesterday said it was assessing the possibility of offering shares of Chinese subsidiaries for overseas investors in order to raise funds at lower cost.

But, ASE said it has no substantial plans for its subsidiaries' initial public offering (IPO).

ASE's comments came after the Chinese-language Economic Daily said yesterday that the Kaohsiung chip packager and tester is preparing for the listing of its Chinese subsidiaries, including Shanghai-based Global Advanced Packaging Technology Ltd (威宇科技), on the Shanghai A-share stock market.

Ten-year bonds fall

Taiwan's 10-year government bonds fell, ending two days of gains, on speculation investors will shift funds to new securities to be auctioned later this month. The Ministry of Finance will sell NT$40 billion (US$1.2 billion) of 10-year bonds on Sept. 18.

On the foreign exchange market, the New Taiwan dollar weakened NT$0.011 to NT$33.082 against the US dollar, according to Taipei Forex Inc.

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