Shares close down
Taiwanese share prices closed 0.43 percent lower yesterday as selling ahead of the Lunar New Year trading break wiped out an early rise, dealers said.
Investors initially reacted positively to New York's firmer finish overnight as the Federal Reserve opened a two-day rate-setting meeting, but then sold stocks, they said.
The TAIEX closed down 32.92 points at 7,543.50 off a high of 7,667.07 and a low of 7,507.52. Turnover was NT$111.17 billion (US$3.45 billion).
Decliners outnumbered advancers 1,029 to 829, with 460 stocks unchanged.
On the foreign exchange market, the New Taiwan dollar closed NT$0.066 higher at NT$32.248 against the US dollar. Turnover was US$1.276 billion, according to Taipei Forex Inc's tallies.
Pou Chen buys back shares
Pou Chen Corp (寶成), a Taiwanese maker of sports shoes for clients such as Nike Inc, plans to buy back as many as 50 million shares.
Changhua-based Pou Chen was to start the buyback yesterday at between NT$17 and NT$42 each, it said in a statement to the Taiwan Stock Exchange yesterday.
The buyback volume of 2 percent of outstanding shares was worth NT$1.19 billion (US$37 million) at yesterday's closing price of NT$23.70 in Taipei.
Motor parts selling well
Taiwanese motor part companies made record sales at the Cairo International Motor Show, amassing US$250,000 in sales and generating potential future trade that could reach US$3.42 million, the Taiwan External Trade Development Council (TAITRA) said yesterday.
During the trade show that finished on Monday, more than 300 international buyers visited Taiwan's booths, TAITRA said.
As much as US$3.42 million was expected to be generated from subsequent sales arising from the sales at the show, the council said.
The agency predicted that this year Taiwan's overall motor part sales to Egypt may surpass US$20 million, a 20 percent increase year-on-year.
Citigroup cuts price targets
Citigroup Inc has cut price targets for personal computer stocks listed in Hong Kong and Taiwan on concern that demand will slow this year.
"Although Asia companies have not reported any order cancellations yet, we believe it is unavoidable, given the global economic slowdown," Citigroup analysts led by Kirk Yang (楊應超) said.
Acer Inc, the world's third-biggest PC maker, had its 12-month price target cut to NT$78 from NT$100.
Lenovo Group Ltd (聯想), the fourth largest, had its price target reduced to HK$7 from HK$12.
US crisis generates local losses
Taiwanese banks and insurers have NT$97.2 billion (US$3 billion) in US subprime mortgages and structured investment vehicles (SIVs).
The investments by 21 Taiwanese banks and a dozen insurers generated NT$23.7 billion in losses after the value of the investments dropped, Financial Supervisory Commission Vice Chairman Susan Chang (張秀蓮) said.
Of this amount, about NT$3.3 billion came from investments that were sold at a loss, she added. Separately, Chang urged investors to remain calm and refrain from panic causing redemptions and selling investments in mutual funds and bonds related to Societe Generale SA.
Taiwan's investors have bought about US$2 billion of 158 structured bonds related to the French bank, Chang said.
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