Shares fall 0.65%
Shares finished 0.65 percent lower yesterday on uncertainty over corporate earnings prospects and because of weakness in the local currency, dealers said.
The weighted index closed down 46.29 points at 7,024.06 off a high of 7,172.48 and a low of 6,965.08 on turnover of NT$92.57 billion (US$3.03 billion).
Decliners led advancers 1,589 to 550, with 417 stocks unchanged.
“Some heavyweights like United Microelectronics Corp (聯電) and MediaTek Inc (聯發科) sent signals in the recent spate of investor conferences that the third quarter would no longer be a busy season as in the past,” Alex Huang (黃國偉) of Mega Securities (兆豐證券) said.
NPL ratio falls slightly
Taiwan’s non-performing loan (NPL) ratio, including loans under surveillance, fell slightly to 1.55 percent in June from the previous month’s 1.61 percent, the Financial Supervisory Commission said in a statement yesterday.
At the end of June, 37 domestic banks had bad loans totaling around NT$281.2 billion, down from NT$289.9 billion in May, the commission’s statistics showed.
Among the 37 banks, 29 outperformed to have a NPL ratio of below 2.5 percent, while another seven banks’ NPL ratios leveled between 2.5 percent and 5 percent. Chinfon Commercial Bank (慶豐銀行) still had the worst NPL ratio (28.15 percent), the statement said.
The commission added that the coverage ratio for domestic banks, which gauges the ability to absorb potential losses from NPLs, reached 67.35 percent in June.
But the figure was down by 0.68 percent from May’s level.
Macronix net income grows
Macronix International Co (旺宏電子) said on Wednesday that its net income had grown 18 percent to NT$849 million (US$27.83 million) in the second quarter on higher shipments. The quarterly profit also represents a rise of 6 percent from a year earlier.
In the second quarter, the company reported NT$0.28 in earnings per share (EPS), compared with NT$0.24 in the previous quarter and NT$0.28 a year earlier, the producer of ROM products and NOR flash memory chips said in a stock exchange filing.
McDonald’s to raise prices
McDonald’s Corp will increase prices on some menu items in Taiwan this month because of higher food and power costs, the Chinese-language China Times reported, citing company sources.
Prices will be raised by an average 20 percent, the second increase since December, when McDonald’s raised prices of some breakfast items, the newspaper said yesterday.
Yum! Brands Inc’s Kentucky Fried Chicken chain was not planning to increase prices, the report said, citing the company.
Kolin ‘normal’ after bad check
Local home electronics maker Kolin Inc (歌林) yesterday said business remained normal after the company bounced a NT$50 million (US$1.63 million) check to lender Cosmos Bank Taiwan (萬泰銀行) on Wednesday.
Kolin office manager Hu Cheng-fa (胡成發) told a press conference that senior management — including chairman and chief executive officer Christopher Liu (劉啟烈), general manager Lee Dun-ren (李敦仁) and spokesperson Chu Tai-yang (朱泰陽) — were engaged in intense negotiations with the bank over the matter.
Kolin has suffered a string of bad luck since investing in LCD TV company Syntax-Brillan Corp in the US. Syntax filed for bankruptcy on July 7.
Kolin’s share price closed limit-down yesterday at NT$2.11 and has dropped 80.5 percent for the year.