TAIEX closes higher
Taiwan share prices closed 0.46 percent higher yesterday although gains were capped by profit-taking after recent rallies, dealers said. The TAIEX index closed up 31.98 points at 6,985.32 on turnover of NT$145.15 billion (US$4.53 billion). Risers led decliners 1,282 to 960, with 226 stocks unchanged. The index reached a psychological resistance level of 7,000 points on gains led by financial stocks in early trade but was pulled back by profit-taking, dealers said. “The trading volume was not sufficient enough to push the index past 7,000 points. It would require at least NT$200 billion” to achieve this end, said Alex Huang (黃國偉) of Mega International Investment Services (兆豐國際投顧).
Banks to re-buy minibonds
Fubon Bank (Hong Kong) (富邦香港) said yesterday it and 15 other banks in Hong Kong have agreed to repurchase the so-called minibonds sold by the defunct Lehman Brothers from investors. Fubon Bank (Hong Kong), a subsidiary of Fubon Financial Holding Co (富邦金控) of Taiwan, said in a statement that it would pay 60 percent in face value of the bonds to investors to buy back the Lehman products. The lender said it estimated the buyback would cost it HK$313 million (US$40 million) but stressed no concern for capital shortage. The 16 banks’ repurchase move came after they reached an agreement with Hong Kong’s Securities and Futures Commission and Hong Kong Monetary Authority to compensate minibond buyers. Lehman’s bankruptcy last year caused the value of the minibonds to collapse, with many of these investors being elderly and poorly educated people.
China Steel may post profit
China Steel Corp (中鋼), the nation’s largest steel mill, said it may post a third-quarter operating profit as demand from automakers and appliance makers improves. The company may raise prices for September, Executive Vice President Chung Le-min (鍾樂民) said yesterday in an interview. Customers are placing more orders on expectation prices will increase as the global economy may have bottomed, he said. China Steel joins rivals including South Korea’s Posco and China’s Baosteel Group Corp. in indicating the worst may be over for global steel demand. On Tuesday, the company said it had a pretax profit of NT$774 million ($24 million) for the second quarter, after reported losses for the six months to March. “Demand has improved from industries such as automakers,” Chung said. Lower material costs are also helping, he said.
Work to start for next month
Construction of the Taiwan pavilion at the Shanghai World Expo 2010 will begin in the middle of next month, the semi-official Taiwan External Trade Development Council (TAITRA, 外貿協會) announced on Tuesday. TAITRA Secretary-General Chao Yung-chuan (趙永全), in his capacity as general manager of the Taipei World Trade Center, signed the contract a day earlier in Shanghai with Hung Hao (洪浩), chief of the Shanghai World Expo Bureau. According to the Shanghai World Expo Bureau, 240 countries have decided to take part in the event that will run from May 1 to Oct. 31 next year. Some participating countries have already started construction of their pavilions.
NT dollar loses ground
The New Taiwan dollar lost ground against the US dollar on the Taipei Foreign Exchange yesterday, declining NT$0.076 to close at NT$32.875. Turnover was US$604 million.
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
Nintendo Co is raising its target for Switch production to about 25 million units this fiscal year, people familiar with the matter said, as the ongoing COVID-19 pandemic keeps lifting demand and component shortages ease. The Kyoto, Japan-based company, which in April hiked orders to 22 million units by March next year, is asking partners to tack on another few million units, said the people, who did not want to be identified discussing internal goals. Assembly partners plan to work at maximum capacity through December. The new production target suggests that Nintendo is likely to outperform its Switch sales forecast of 19 million
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US