Political concern rattles bourse
Shares closed 2.2 percent lower yesterday on weak fundamentals and the political uncertainty generated by former president Chen Shui-bian’s (陳水扁) questioning on corruption allegations, dealers said.
The weighted index fell 101.7 points to 4,638.57 on turnover of NT$55.46 billion (US$1.69 billion).
Financials led the decline with a 5.24 percent fall. The construction sector plunged 4.99 percent, paper dropped 3.76 percent and electronics was off 2.14 percent.
Cement soared by 5.46 percent, boosted by China’s unveiling of a US$586 billion economic stimulus package on Sunday.
“A majority of the electronics companies reported poor third-quarter operating results,” discouraging potential investors, Grand Cathay Securities (大華證券) analyst Mars Hsu said.
The questioning of Chen by prosecutors on corruption charges also weighed on the market.
“Investors feared that should Chen be taken into custody, his supporters may launch widespread demonstrations,” Hsu said.
TSMC to cancel shares
The board of Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, yesterday approved a plan to cancel 279 million treasure shares it repurchased from the open market earlier this year.
The shares to be canceled account for 1.07 percent of total issued shares. The cancelation will reduce TSMC’s registered capital stock by NT$2.79 billion (US$85 million) to approximately NT$256 billion, TSMC said in a statement.
The board set next Wednesday as the record date for the capital reduction.
The board also gave the go-ahead to the promotion of Rick Cassidy to vice president. Cassidy is currently the president of TSMC North America and will continue to serve in that position.
Pegatron/Unihan’s sales drop
Pegatron Corp (和聯) and Unihan Corp (永碩) yesterday reported combined revenues of NT$52.76 billion (US$1.6 billion) last month, down 2 percent from September, they said in a statement.
Pegatron Corp and Unihan Corp were spun off by Eee PC maker Asustek Computer Inc (華碩電腦) in January. Asus now focuses on its own-brand business, while Pegatron and Unihan specialize in production for major international personal computer and electronics vendors.
Pegatron/Unihan’s sales breakdown last month showed shipments of 3.2 million motherboards and desktops, up 18 percent from September; 800,000 to 900,000 laptops (not including Eee PCs), down 2 percent; and 1.15 million graphics and TV cards, up 13 percent.
Accumulated revenues in the first 10 months of this year reached NT$397.97 billion.
Banks to adjust rates monthly
Eleven domestic banks agreed to adjust their mortgage rates on a monthly — rather than quarterly or longer — basis after a meeting with the central bank yesterday.
The central bank had lowered interest rates four times in the last six weeks, but most homeowners have yet to benefit from lower mortgage payments because lenders adjust rates every three or six months in line with contract terms.
Starting today, homeowners may apply to change their mortgage rates every month, the central bank said in a statement.
They may do so with the Bank of Taiwan (臺灣銀行), Land Bank of Taiwan (土地銀行), First Commercial Bank (第一銀行), Taipei Fubon Bank (台北富邦銀行), Chinatrust Commercial Bank (中國信託銀行), Chang Hwa Commercial Bank (彰化銀行), E.Sun Bank (玉山銀行), Cathay United Bank (國泰世華銀行), Bank SinoPac (永豐銀行), Taiwan Cooperative Bank (合庫銀行) and Hua Nan Commercial Bank (華南銀行).
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