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Share prices close lower

Taiwanese share prices closed 1.62 percent lower yesterday on concern the return of crude oil prices above US$100 will put further pressure on the slowing US economy, dealers said.

The weighted index closed down 129.94 points at 7,894.47, off a high of 8,040.83 and a low of 7,855.48, on turnover of NT$113.68 billion (US$3.6 billion).

"We had a pullback after Seoul and Tokyo, which had been resilient, turned weaker today," said Mega International Investment Services (兆豐國際投顧) assistant vice president Alex Huang (黃國偉).

The benchmark index encountered mounting resistance as it approached 8,100 points while consolidation is likely in the near term with the market testing support around 7,800, Huang said.

Huang also cast doubt over prospects of the improvement in Taiwan-China economic ties ahead of the March 22 presidential vote, despite reports of the government mulling such market-friendly measures.

"Opening up to China at the last minute after failing to do so since assuming power in 2000 would be tantamount [for the government] to acknowledging their big mistake over the past seven years," he said.

Notebook shipments jump

Shipments of local notebook computer makers led by Quanta Computer Inc (廣達電腦) jumped to a record high to 28.2 million units in Taiwan in the final quarter of last year, fueled by strong demand for Christmas and new models, market researcher International Data Corp (IDC) said yesterday.

That represented about 44 percent year-on-year growth, or an 11.6 percent quarter-on-quarter increase, beating IDC's expectation of single-digit growth on concern of key component shortage and slowing demand in the US dragged by sub-prime credit crisis.

The results indicated those factors had limited impact on local laptop computer makers' shipments, IDC said.

Besides, strong demand for new consumer models from Acer Inc and Hewlett Packard Co was also a plus, the researcher said. Revenues expanded 31.6 percent year-on-year to US$15.14 billion in the fourth quarter of last year, IDC's latest report said.

Quanta secured its top position by capturing 33 percent of the total shipments, while Compal Electronics Inc (仁寶) and Wistron Corp (緯創) tracked behind by grabbing 23 percent and 13 percent share, ICD's report showed.

FAT must raise NT$690 million

Far Eastern Air Transport Corp (FAT, 遠航) must be able to raise at least NT$690 million (US$20.9 million) by March 5 to temporarily ease its financial crisis, the Civil Aeronautics Administration (CAA) confirmed yesterday.

The figure was FAT's own estimates, CAA Director General Billy Chang (張國政) said yesterday.

Chang said the administration now requires FAT to hand in a financial report daily to make sure that the company is able to continue operations the next day.

FAT yesterday bounced another check of NT$12.5 million owed to Cathay United Bank (國泰世華銀行). When asked if the company was able to pay the airplane departure and landing fees it owed the CAA, Chang said that the company is expected to provide collaterals and its plan to clear its debt.

Chang reiterated that the administration will not detain FAT's assets, but it could not prevent any other creditors from exercising its rights.

"The bottom line is that the company could only pay back the money it owes if it continues to operate," he said.

NT dollar gains

The New Taiwan dollar yesterday gained NT$0.050 to trade at NT$31.648 on turnover of US$1.146 billion.
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