Electronics boost TAIEX
Share prices closed up 2.48 percent yesterday on strong buying in the bellwether electronics sector, dealers said.
The TAIEX rose 108 points to 4,471.25 on turnover of NT$71.81 billion (US$2.13 billion).
Gainers led losers 1,184 to 396 with 210 stocks unchanged.
The market opened up 1.72 percent and the momentum continued until the end of the day as investors took cues from Wall Street’s gains overnight, in particular, a strong performance staged by US high tech stocks, dealers said.
The NASDAQ defied pessimism over the global economy to rally, giving investors high hopes of improving fundamentals in the second quarter, Mega Securities (兆豐證券) analyst Allen Huang said yesterday.
“Technically speaking, the [high-tech] sector had been oversold before the Lunar New Year holiday. It is time for institutional investors to rebuild positions,” he said.
“As the market is full of liquidity, the market upside is very likely to continue, although the bourse has to jump over resistance around 4,500 points,” he said.
Fitch reaffirms banks’ ratings
Fitch Ratings affirmed its “stable” outlook ratings on five Taiwanese banks yesterday, but warned the economic slump might have negative impact on the nation’s financial institutions this year.
The five banks were Taiwan Business Bank (台灣企銀), Land Bank of Taiwan (土地銀行), Mega International Commercial Bank (兆豐國際商銀), Cosmos Bank (萬泰銀行) and Ta Chong Bank (大眾銀行).
Fitch said in a statement that the overall banking sector is likely to incur net losses this year.
The ratings agency cited “ongoing margin compression on the back of extremely low interest rates, an anticipated increase in credit costs and anemic fee income” as reasons behind the losses for this year.
Elphida seeking US$493m
Elpida Memory Inc, Japan’s largest maker of computer-memory chips, needs as much as ¥45 billion (US$493 million) to help weather a demand slump that has forced all major producers to report losses.
“We are looking for about ¥40 billion to ¥45 billion,” president Yukio Sakamoto said yesterday.
The Tokyo-based company would welcome Japanese public funds or an investment by Taiwan, where its Rexchip Electronics Co (瑞晶電子) is based, he said.
Elpida jointly owns Rexchip with Powerchip Semiconductor Corp (力晶半導體), Taiwan’s largest computer-memory maker.
MOEA offers construction plan
The Ministry of Economic Affairs (MOEA) was scheduled to submit a public infrastructure construction program package to the Executive Yuan yesterday that is expected to create 5,000 jobs and secure 90,000 existing ones, a ministry official said.
The package, which covers eight medium and small construction and renewal projects, is aimed at helping revive the sagging economy and curbing the soaring unemployment rate, the official said.
The ministry plans to allocate a public affairs budget of NT$9.62 billion and a special budget of NT$17.75 billion to fund the projects, which are scheduled to be implemented over the next two years, the official said.
The package includes four projects by the Industrial Development Bureau to rejuvenate old industrial zones, the official said.
NT dollar slips
The New Taiwan dollar lost ground against the US dollar on the Taipei Foreign Exchange yesterday, declining NT$0.045 to close at NT$33.750.
Turnover was US$744 million.