Shares rise 0.37 percent
Taiwanese shares closed up 0.37 percent yesterday on improved economic prospects for the coming year after recent data showed a recovery in exports, dealers said.
The weighted index rose 28.71 points to 7,797.42 on turnover of NT$136.87 billion (US$4.25 billion).
Gainers outnumbered losers 1,327 to 1,233, while 288 shares remained unchanged.
The market opened low but bargain-hunting emerged to push the index to close at the daily high.
“Compared with the region’s other markets, the Taiwan Stock Exchange was relatively strong,” said Michael Chiang of Taiwan International Securities (金鼎證券). “Investor confidence has picked up. Leading the prevailing optimism was the continued improvement of the export sector.”
Investors cool on Arima plan
Arima Optoelectronics Corp (華上光電) saw its shares fall in Taipei trading after the maker of light-emitting diodes said it was planning a venture with the Changzhi City administration in China’s Shanxi Province. The stock fell 3.7 percent to NT$13.15 at the close, recovering somewhat after sliding by as much as the 7 percent daily limit on the Taiwan Stock Exchange.
Arima said in a statement on Tuesday that it would take a 40 percent stake in the US$44 million venture. The city administration will take the rest.
The post of Arima president was vacant for almost two years until July, and some staff left during this period. The company had about NT$2 billion in debt as of the first half of this year. It posted a NT$1.1 billion net loss last year, according to Bloomberg data.
FSC flags rise in China credit
Financial Supervisory Commission (FSC) chairman Sean Chen (陳冲) said yesterday that China-based Taiwanese businesses may require a total loan credit of up to US$400 billion. Their current investment amounts to US$200 billion.
That would translate into more lending business opportunities for China-bound Taiwanese banks after a memorandum of understanding between Taiwan and China takes effect next month, Chen told a seminar yesterday.
Chang Ming-daw (張明道), head of the commission’s banking bureau, said he expected eight China-bound Taiwanese banks would initially inject capital of about NT$16 billion (US$494.6 million) into the Chinese market, which would only account for 0.11 percent of total assets, or 2.13 percent of their net worth.
Mega reports November profit
Mega Financial Holding Co (兆豐金) yesterday reported a net profit of NT$802.7 million (US$24.8 million) for last month, or NT$0.07 per share, after its asset management arm suffered a net loss of NT$3 million, the company said in a press statement.
Net income in the first 11 months of the year totaled NT$13.2 billion, or NT$1.19 per share, the statement added.
The financial service provider’s earnings report showed that its bills subsidiary contributed the biggest net profit of NT$2.7 billion.
Little change to NT dollar
The New Taiwan dollar was little changed, having given up earlier gains on speculation that the central bank intervened to slow appreciation that may hurt exports.
The local currency earlier rose as much as 0.3 percent on speculation that exporters sold the greenback to guard against strengthening in the local currency before year’s end. The NT dollar has climbed 1.6 percent this year.
The NT dollar traded at NT$32.349 versus the US currency at the 4pm close in Taipei, compared with NT$32.350 on Tuesday, according to Taipei Forex Inc.
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Malaysia’s leader yesterday announced plans to build a massive semiconductor design park, aiming to boost the Southeast Asian nation’s role in the global chip industry. A prominent player in the semiconductor industry for decades, Malaysia accounts for an estimated 13 percent of global back-end manufacturing, according to German tech giant Bosch. Now it wants to go beyond production and emerge as a chip design powerhouse too, Malaysian Prime Minister Anwar Ibrahim said. “I am pleased to announce the largest IC (integrated circuit) Design Park in Southeast Asia, that will house world-class anchor tenants and collaborate with global companies such as Arm [Holdings PLC],”
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