TAIEX closes at six-year low
Share prices closed down 4.53 percent yesterday to a six-year low, tracking Wall Street’s overnight plunge and weaker regional markets, dealers said.
The weighted index fell 194.16 points to 4,089.93, its lowest level since October 2002. Turnover was NT$44.97 billion (US$1.35 billion). A total of 261 stocks closed limit-down and 35 were limit-up.
Plastics/petrochemical fell 5.91 percent and financials lost 5.82 percent. Electronics were down 4.60 percent, construction down 3.37 percent and textiles down 3.22 percent.
“Taipei shares reflected the downward trend in the global markets as demand and export growth weakened,” said Allen Lin, an analyst at Concord Securities (康和證券).
Lin expected the market to extend further losses to test 3,800 points next week due to a lack of positive leads.
Taiwan Semiconductor Manufacturing Co (台積電), the world’s largest contract chip maker, shed 3.16 percent to NT$36.80. United Microelectronics Corp (聯電) was limit-down 7 percent at 7.08.
Corning to halt expansion
Corning Inc, the world’s largest maker of glass for liquid-crystal displays, said it will halt plans to expand in Taiwan and will cut production on the island because of declining demand.
“We’ve put it on hold,” Jim Terry, a spokesman for the company, said in a phone interview from Corning, New York, yesterday.
Corning said in early February that it would spend US$453 million to increase its glass-making capacity in Taichung. Terry yesterday declined to comment on the scale of the production cuts.
The slowdown comes as Corning’s Taiwan customers including AU Optronics Corp (友達) and Chi Mei Optoelectronics Corp (奇美光電) reduced output amid slowing demand for flat-screen televisions and computer monitors.
Terry denied local media reports that Corning is planning to decrease staff in Taiwan. About 200 contract workers in Japan, Taiwan, China and the US will be cut, while the company will reduce staff in Kentucky by 85 employees on Dec. 8, he said.
Investment in China subsiding
Taiwanese investment in China has subsided even after restrictions on business between the two sides were eased, the Central News Agency reported on its Web site, citing a Mainland Affairs Council official.
Government-approved Taiwanese investment in China fell 34.2 percent in the third quarter from a year earlier, the agency cited council Vice Chairman Fu Dong-cheng (傅棟成) as saying.
Easing of restrictions on China-bound investment has not hurt Taiwan economy, yet the “China investment fever” has subsided, Fu was quoted as saying.
Taiwan and China signed an accord earlier this month allowing regular direct flights and shipping for the first time in almost 60 years
China Steel to offer bonds
China Steel Corp (中鋼), Taiwan’s largest steelmaker, plans to sell as much as NT$20 billion of bonds to increase working capital
The debt will pay annual interest of no more than 3.5 percent, the company said in a filing to the Taiwan Stock Exchange yesterday.
China Steel is selling bonds as interest rates fall after the central bank lowered its benchmark interest rate for the fourth time in two months early this month.
Lawmakers exclude Cape Verde
The Executive Yuan yesterday approved a proposal by the Ministry of Finance to exclude the Republic of Cape Verde from its list of under-developed countries that enjoy customs-free treatment.
The Financial Supervisory Commission (FSC) has deferred the implementation of the Basel III standards and capital requirements for “domestic systemically important banks” to ease their capital pressure so they can concentrate on helping businesses affected by the COVID-19 pandemic, FSC Chairman Thomas Huang (黃天牧) said yesterday. The Basel III standards were set by the Basel Committee on Banking Supervision (BCBS) and were originally to take effect on Jan. 1, 2022. They have stricter capital requirements and adopt different approaches to calculating risks. However, the implementation of the standards would be delayed by one year in line with the revised timeline announced by
Phoenix Silicon International Corp (昇陽半導體) yesterday said strong demand from customers means it would maintain its capacity expansion plan for this year. The silicon wafer recycler, which counts Taiwan Semiconductor Manufacturing Co (台積電) among its major customers, next quarter plans to add a capacity of 60,000 12-inch wafers per month, bringing its total capacity to 300,000 wafers a month. “Phoenix Silicon is enhancing its smart manufacturing capabilities and actively expanding 12-inch capacity at an existing fab to satisfy customer demand,” Phoenix chairman Mike Yang (楊聰敏) said in the firm’s annual report. Phoenix is also evaluating the feasibility of building a second fab
LOCKDOWN LETHARGY: Despite the overall 3.51 percent increase, the automobile and auto parts sector posted its largest year-on-year decline since the 2009 global crisis The nation’s industrial production increased 3.51 percent year-on-year last month, the third consecutive month of annual growth despite the effects of the COVID-19 pandemic, Ministry of Economic Affairs data showed yesterday. Output from the manufacturing sector, which makes up more than 90 percent of industrial output, expanded by 4.15 percent, largely due to demand for electronic components, the data showed. “Demand for electronic components remains robust due to new technologies and services, such as 5G, the Internet of Things, cloud computing and high-performance computing,” Department of Statistics Director-General Wang Shu-chuan (王淑娟) told a news conference in Taipei. Demand for servers, laptops, and network
EQUITIES TAIEX rebounds after slump The TAIEX yesterday staged a moderate technical rebound following Friday’s slump as bargain hunters bought into select market heavyweights, especially in the bellwether electronics sector. However, turnover remained thin as many investors stayed on the sidelines to see how tensions between Washington and Beijing play out after China unveiled plans to implement national security legislation in Hong Kong to tighten its grip on the territory, dealers said. The TAIEX closed up 60.03 points, or 0.56 percent, at 10,871.18, on turnover of NT$146.074 billion (US$4.86 billion). Foreign institutional investors sold a net NT$4.57 billion of shares, Taiwan Stock