TAIEX advances nearly 2%
Taiwanese share prices closed up 1.97 percent yesterday, tracking Wall Street’s overnight rally and gains in regional markets, dealers said.
The TAIEX rose 136.06 points to 7,034.96 on turnover of NT$120.43 billion (US$3.76 billion).
Gainers led losers 1,838 to 597 with 144 stocks unchanged.
KGI Securities Co (凱基證券) trader Randy Chang (張修華) said tourism and financial sectors led the rally on bargain hunting after recent sharp falls.
“Financials are rebounding ... The outlook seems positive ahead of Fubon Financial Holding Co’s (富邦金控) investor conference today,” he said.
MSCI adds Prime View
MSCI Barra announced early yesterday that it was adding Prime View International Co (元太科技), one of the world’s major makers of medium-sized flat-panel screens for consumer electronics, and local gaming content provider Chinese Gamer International Corp (中華網龍) to its Taiwan index.
Boosted by the news, shares of Prime View gained 6.93 percent to close at NT$43.20, while the stock of Chinese Gamer advanced 3.13 percent to NT$461.50 on the GRETAI Securities Market.
Globally, MSCI added 17 new stocks and cut three companies during the latest review, a press release posted on the global index compiler’s Web site showed.
AIDC to supply Pratt & Whitney
Aerospace Industrial Development Corp (AIDC, 漢翔) yesterday signed a seven-year contract with US aircraft engine manufacturer Pratt & Whitney Co.
The NT$2 billion (US$60.81 million) contract will allow AIDC to produce turbine casings for Pratt & Whitney’s F100 engines. AIDC also hopes to obtain future orders for various engine components, as well as service and maintenance.
The F100 series engines are used in F-15 and F-16 fighter jets.
In 2007, AIDC signed a technical assistance agreement with Pratt & Whitney to jointly provide maintenance service for F100 engines, and as a result, received US government certification as a veritable provider of turbine casings for F100 engines.
Chinese airline opens in Taipei
China Southern Airlines Co (中國南方航空) opened a subsidiary in Taipei yesterday to prepare for the launch of regular flights across the Taiwan Strait.
“Now that the company is set up, we can start selling tickets to Taiwanese customers,” company press officer Corinne Tseng (曾慶寧) said.
China Southern Airlines is the first Chinese airline to be permitted to open a subsidiary in Taiwan. Taiwan has also approved applications from six other Chinese airlines to open subsidiaries.
Eurozone dipped 0.1% in Q2
The eurozone economy contracted by just 0.1 percent in the second quarter as Germany and France unexpectedly emerged from recession, EU data showed yesterday.
The figures, which are initial estimates, fueled hopes that the eurozone’s biggest hitters could pull the others out of the worst recession the region has known since 1945, although analysts said the data should be treated with caution.
“The economy is still contracting [but] the situation is much better than we expected in the spring,” European Commission spokesman Ton Van Lierop told reporters in Bussels.
“The sharpest contractions in activity seem to be behind us,” he said.
NT dollar gains ground
The New Taiwan dollar gained ground against the US dollar on the Taipei Foreign Exchange yesterday, rising NT$0.052 to close at NT$32.898. Turnover was US$938 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
NERVOUS MARKET: With the infection sources still unknown for three COVID-19 cases that had departed Taiwan, investors have become uneasy, an analyst said Local shares yesterday came under heavy downward pressure, falling more than 1 percent as renewed fears over a possible increase in domestic COVID-19 infections hit market sentiment after the nation last week reported a case related to a Belgian national. Selling focused on the bellwether electronics sector, led by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which pushed down the broader market as investors ignored gains posted by tech heavyweights on the US market at the end of last week, dealers said. The TAIEX closed down 151.77 points, or 1.2 percent, at 12,513.03, on turnover of NT$231.43 billion (US$7.84 billion). Foreign