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TAIEX plummets 3.28 percent

Taiwan's benchmark index plunged 3.28 percent yesterday, weighed down by China-related and non-tech stocks as well as weakness on regional bourses.

The Weighted Price Index of the Taiwan Stock Exchange dropped 253.80 points to close at 7,485.79.

Analysts said shares are likely to dip even lower later this week.

"Bad news keeps coming and [the Taiwan market] hasn't bottomed yet," said Lawrence Jao (饒孟友), chairman of Primasia Investment Trust.

Uni-President Enterprises (統一) lost 4.6 percent yesterday to close at NT$39.90, Formosa Plastics (台塑) shed 4.5 percent to NT$85 and Taiwan Glass Industry (台玻) dropped 6.9 percent to NT$32.20.

Yunta Financial Holding (元大金控) dipped NT$1.75 to NT$23.55 despite the Economic Daily quoting its chairman as saying it is interested in buying Chinfon Commercial Bank's (慶豐銀行) Vietnam-based branch to tap into booming Vietnamese markets.

Taipower to buy on spot market

Taiwan Power Co (Taipower,台電), the nation's biggest electricity producer, plans to buy coal in the spot market because of concern China will stop exports, chief engineer Tu Yueh-yuan (杜悅元) said.

The utility issued a tender last week for about 1 million tonnes of coal and may buy more in the spot market, Tu said, adding that imports from China meet about 15 percent of Taipower's coal demand.

"What worries us is that China will stop coal exports in February and March," Tu said. "If it happens, it will reduce coal supplies by 800,000 tonnes."

Generators that run on the fuel accounted for 45 percent of Taiwan's electricity production last month, according to Taipower's Web site. The government owns 97 percent of the utility, which produces about 75 percent of the electricity the nation uses and monopolizes transmission in Taiwan.

Taiwan Mobile stake sold

Local fixed company Taiwan Fixed Networks Corp (台灣固網) yesterday said it sold 150 million shares, or a 3 percent stake, in parent company Taiwan Mobile Co (台灣大哥大) to foreign investors for NT$6.78 billion, or NT$45.2 a share, to fund its operation. The offer represents 1.95 percent premium compared with the stock's closing price of NT$43.25 yesterday. Taiwan Mobile is the nation's No.2 telecom operator.

Taiwan Fixed Networked declined to reveal the name of the oversea investors. It said it also sold 150 million Taiwan Mobile shares to chairman Richard Tsai's (蔡明興) family for the same amount.

Separately, Taiwan Mobile yesterday said its cable TV subsidiary Taiwan Fixed Networks Media (台固媒體有限公司) has increased its stake in Kaohsiung-based cable TV system operator Phoenix CATV Co Ltd (鳳信有線電視) to 97 percent for about another NT$1.07 billion to enhance its cable TV business.

Taiwan Fixed Networks Media bought 18.16 million Phoenix shares at NT$58.7 a share, from its major shareholders including life insurer China Life Insurance Co (中國人壽), according to a filing to the Taiwan Stock Exchange.

Chunghwa Picture to close plant

Chunghwa Picture Tubes Ltd (華映), Taiwan's third-biggest maker of liquid-crystal displays (LCD), plans to close one cathode-display tube production line in China as demand slows for televisions and monitors using the bulky screens.

The company plans to convert the production line to assemble LCD modules for portable consumer electronics such as digital cameras, chief financial officer James Wu (巫俊毅) said by telephone yesterday.

Wu's comment came after the Economic Daily News said yesterday the company planned to close a plant in China after posting more than NT$100 million (US$3 million) in losses every month.

NT slips against US dollar

The New Taiwan dollar yesterday weakened by NT$0.045 to close at NT$32.345 against the greenback on turnover of US$785 million.
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