Tue, Aug 25, 2009 - Page 11 News List

Business Briefs

STAFF WRITER, WITH AGENCIES

Shares climb 2.76%

Taiwanese shares closed up 2.76 percent yesterday after Wall Street hit another fresh high for the year, dealers said.

The weighted index rose 183.45 points to 6,838.25 on turnover of NT$90.1 billion (US$2.75 billion).

The market opened 1.68 percent higher on a Wall Street rally on Friday and momentum accelerated throughout the session after US Federal Reserve Chairman Ben Bernanke said that global recovery prospects “appear good,” dealers said.

Buying focused on large cap stocks, such as Taiwan Semiconductor Manufacturing Co (台積電), United Microelectronics Corp (聯電) and select financial and petrochemical stocks, they said.

Taiwan International Securities (金鼎證券) analyst Arch Shih (施博元) said few would doubt the strength of US markets and Bernanke’s comments were positive for the market.

“But, judging from the gains by large cap stocks, I suspect the buying largely came from government-controlled funds in an attempt to help the local bourse get out of the recent weakness,” Shih said.

Powertech to buy China plant

Local chip tester Powertech Technology Inc (力成) said it signed an agreement with Spansion Inc to purchase a Chinese plant from the US company for US$51 million via an overseas subsidiary, aiming to build a greater presence in the Chinese semiconductor market.

The deal came after Spansion suspended a memorandum of understanding with bigger rival Advanced Semiconductor Engineering Inc (ASE, 日月光半導體) earlier this year to sell the plant after the Sunnyvale, California-based firm filed for bankruptcy protection.

Shares of Powertech jumped 1.91 percent to NT$90.7, while ASE declined 2.19 percent to NT$24.55 yesterday.

Powertech said the deal aimed “to expand to the Chinese market,” according to a company statement submitted to the Taiwan Stock Exchange on Sunday.

Powertech said its subsidiary Powertech Holding (BVI) Inc has inked an agreement with Spansion Holdings (Singapore) Pte Ltd to buy out the company. Spansion Holdings (Singapore) owns Spansion (China) Ltd, which operates a plant in Suzhou.

The plan will need approval from the Ministry of Economic Affairs’ Investment Commission.

Lenovo to spend US$3.3bn

Lenovo Group Ltd (聯想), China’s biggest maker of personal computers, plans to spend US$3.3 billion in Taiwan in the next 12 months buying laptops and equipment from companies, including Hon Hai Precision Industry Co (鴻海精密).

The orders will “be fulfilled in less than a year,” Lenovo vice president Du Jianhua (杜建華) said in Taipei yesterday.

Lenovo intends to buy computers, PC peripherals and monitors from nine Taiwanese companies, including Quanta Computer Inc (廣達電腦), Compal Electronics Inc (仁寶電腦) and AU Optronics Corp (友達), the Taiwan External Trade Development Council said.

Bank to sell Sanchong plot

State-run Chang Hwa Bank (彰銀) yesterday said that it plans to auction off a parcel of 15,800 ping (52,140m²) land in Sanchong (三重), Taipei County, which was previously owned and collateralized by Shin Yen Textile Co (新燕實業) in order to take out a NT$5.2 billion (US$158.8 million) loan.

The bank said that its board had approved the deal on Friday, although its floor price and auction details are yet to be determined, its press statement said yesterday.

NT dollar climbs slightly

The New Taiwan dollar yesterday advanced slightly by NT$0.043 to close at NT$32.863 against the greenback on turnover of US$494 million.

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