The nation’s over-the-counter GRETAI Securities Market is expected to rebound more than 50 percent by the summer in expectation of a recovering economy and rebounding demand for the nation’s major exports, a government official said yesterday.
The index of 541 stocks listed on the GRETAI may rally to more than 100 points by the end of June, GRETAI chairman Lu Daung-yen (呂東英) told reporters during a luncheon.
That will mean about a 56 percent jump from the index’s close of 64.22 points yesterday.
“We are seeing more positive signs ... The worst is coming to an end,” Lu said. “We are seeing a rise in new orders for local exporters and some companies starting to end the practice of unpaid leave.”
Lu said the recovery could be more marked after May.
The nation’s second-largest liquid-crystal-display (LCD) panel maker Chi Mei Optoelectronics Corp (奇美電子) told the Taipei Times that it had restored regular working hours at some production lines in order to cope with a rush of orders, primarily from Chinese customers.
Chi Mei yesterday posted a 50 percent year-on-year decline in last month’s sales to NT$11.2 billion (US$333 million), while bigger local rival AU Optronics Corp (友達光電) said last month’s sales shrank 72 percent to about NT$13.2 billion.
Late last month, AU Optronics told investors that operations would hopefully bounce back quarter-by-quarter after shipments for PC and TV flat panels declined another 20 percent quarter-on-quarter.
Capital outflow is also on the wane after the government made significant cuts to the inheritance tax rate, which helped divert money back into the local stock markets, Lu said.
Turnover slid to NT$9.27 billion on the GRETAI yesterday after hitting a key level of NT$10.028 billion on Friday.
Taiwan Stock Exchange Corp chairman Schive Chi (薛琦) said the turnover on the TAIEX would also expand this quarter from the low levels seen in the fourth quarter of last year because of the global financial turmoil.
Blaming the financial recession, Lu said some overseas companies have postponed their listing on the GRETAI. He said the problem was also afflicting other exchanges around the world.
Last year, the firms had expressed their intention to debut their shares on the GRETAI and they would keep the listing as a priority, Lu said, citing the exchange’s low management fees and the high price-to-earnings ratios.
Polytronics Technology Corp (聚鼎科技) yesterday announced that it is buying Henkel AG’s thermal clad dielectric material (TCLAD) business division for US$26 million as the Taiwanese firm aims to improve its technology, product portfolio and revenue performance. Polytronics, headquartered in the Hsinchu Science Park (新竹科學園區), is a supplier of protection components and heat dissipation materials. The firm entered the metallic heat-dissipation substrate market in 2007 and developed a unique solventless production process. Its board of directors approved signing an agreement with Henkel to acquire the German chemical firm’s TCLAD division in the US. The purchase includes all assets and business interests, including equipment,
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate
‘SENSITIVE MARKETS’: The previously unannounced project would involve the company handing over control of data to a third party to sidestep privacy concerns Google has abandoned plans to offer a major new cloud service in China and other politically sensitive countries due in part to concerns over geopolitical tensions and the COVID-19 pandemic, two employees familiar with the matter said, revealing the challenges for US tech giants to secure business in those markets. In May, the search giant shut down the initiative, known as “Isolated Region” and which sought to address nations’ desires to control data within their borders, the employees said. The action was considered a “massive strategy shift,” said one of the employees, who added that Isolated Region had involved hundreds of employees