Electronics sector lifts TAIEX
Taiwanese shares closed up 2.82 percent yesterday as the bellwether electronics sector led a technical rebound, dealers said.
The weighted index rose 126.08 points to 4,592.50, off a low of 4,504.71 and a high of 4,599.61, on turnover of NT$74.56 billion (US$2.19 billion).
Gainers led losers by 1,449 to 237, with 118 stocks unchanged.
The market opened up 0.86 percent on a strong showing by the high-tech sector and the momentum extended until the end of the session, with buying spreading to almost all other sectors, dealers said.
For the week, the weighted index rose 119.25 points or 2.67 percent after a 5.26 percent increase from a week earlier. Average daily turnover stood at US$73.6 billion, compared with US$59.76 billion the previous week.
Fuel prices to rise
Domestic gasoline and diesel prices will increase by NT$0.4 and NT$0.5 per liter respectively to reflect world crude prices, CPC Corp, Taiwan (CPC, 台灣中油) announced yesterday.
After the adjustment, which takes effect today, CPC’s price for a liter of 98-octane unleaded gasoline will be NT$25, 95-octane unleaded gasoline will cost NT$23.5 and 92-octane unleaded gasoline will cost NT$22.8. Meanwhile, diesel will cost NT$20 per liter.
The state-owned oil refinery adjusts its energy prices every Friday afternoon, with the new prices effective the following day. To date, the unprofitable CPC is still absorbing the rise in the international market at the request of government.
CPC assigns its oil prices by using energy information provider Platt’s reports on average petroleum prices from Dubai and Brent with a 70 percent and 30 percent allocation, the company said.
Rival Formosa Petrochemical Corp (台塑石化) announced it would match CPC’s price hikes, effective today.
‘Difficult’ year for Hong Kong
Hong Kong banks face a difficult year as lending slows and demand for investment products weaken as the economy moves deeper into its first recession since 2003, the city’s central bank said.
“[The year’s] operating environment will inevitably be difficult,” Y.K. Choi (蔡耀君), deputy chief executive officer of the Hong Kong Monetary Authority, told reporters at a briefing yesterday. “Some banks may see red.”
Japan’s spending falls
Japanese household spending fell 1.9 percent last year from a year before to ¥296,932 (US$3,290) per month, the government said yesterday.
Spending for food dropped 1.9 percent from the previous year while utility expenditure declined 1.3 percent last year, the Internal Affairs and Communications Ministry said.
The average monthly income of salaried households dipped 0.6 percent last year to ¥534,235 from a year before.
The yearly average of monthly spending by salaried households also dropped 1.1 percent to ¥324,929.
NT dollar continues decline
The New Taiwan dollar continued losing ground against the US dollar on the Taipei Foreign Exchange yesterday, declining NT$0.025 to close at NT$34.05.
The NT dollar dropped this week on speculation exports will extend last month’s slump, as US President Barack Obama’s stimulus plan may fail to revive demand.
“Our outlook for the Taiwan dollar is still weak,” said Thio Chin Loo, senior currency strategist at BNP Paribas in Singapore.
Regarding the US stimulus plan, she said: “The situation is still gloomy, which supports the dollar against Taiwan.”
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
A Bollywood actor’s face tattooed on his arm, Sandeep Bacche’s devotion shocks few in India where stars enjoy semi-divine status, but even there the hallowed silver screen might be losing its shine to streaming services and pandemic fears. “Whenever things get better and theaters begin operations, I will watch three movies a day for sure just as a way to celebrate,” said the Mumbai rickshaw driver, who is recovering from the virus himself. However, others might not join the party. With cinemas shut for months due to a COVID-19 lockdown, and little prospect they will reopen soon, frustrated Bollywood producers have turned to
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, is to issue NT$13.9 billion (US$469.5 million) in unsecured bonds to help fund its plan to expand production capacity, it said on Friday. In a Taiwan Stock Exchange filing, TSMC said the bonds would comprise three tranches: NT$5.7 billion payable over five years, NT$6.3 billion over seven years and NT$1.9 billion over 10 years. The interest rates would be 0.58 percent on the five-year bonds, 0.65 percent on the seven-year ones and 0.67 percent on the 10-year tranche, TSMC said. Capital Securities Corp (群益金鼎證券) is to serve as the main underwriter in