Share prices close up
Share prices closed up 0.90 percent yesterday on follow-through buying amid continued optimism over the economic benefits of the imminent economic cooperation framework agreement (ECFA) with China, dealers said.
The TAIEX rose 66.66 points to 7,454.06, after moving between 7,364.34 and 7,489.68, on turnover of NT$79.87 billion (US$2.48 billion).
The market opened marginally higher, up 1.17 points, on Wall Street’s lackluster performance overnight, but interest was renewed during the mid-morning trade, boosting sectors that are expected to be allowed tariff waivers and easier market access under an ECFA, dealers said.
A total of 1,724 stocks closed up and 1,117 down, while 379 remained unchanged.
Notebook makers optimistic
Local contract notebook makers Wistron Corp (緯創) and Compal Electronics Corp (仁寶) said yesterday they expect shipments for the third quarter of this year to grow as the impact of the European debt crisis on global demand lessens.
Wistron chairman Simon Lin (林憲銘) said he expects notebook shipments for the third quarter to rise more than 10 percent from the second quarter.
Lin said that while the impact of the European crisis on demand for notebooks was visible in April, the impact tapered off last month. He added that the company’s shipments since the beginning of the month had returned to normal.
Compal president Ray Chen (陳瑞聰) said on a separate occasion that he expects his company’s notebook shipments for the third quarter to grow between 5 percent and 10 percent from the second quarter. He said the company has not changed an earlier forecast of 50 million units shipped this year.
New growth plan announced
Minister of Economic Affairs Shih Yen-shiang (施顏祥) said yesterday that the government will adopt a “double engine” economic development model for the next 10 years, with a special focus on re-energizing the traditional and service industries.
“The next 10 years will be a key period for Taiwan in its industrial transition efforts,” Shih said at a Taipei forum on investment in Taiwan.
Shih mapped out three directions in which Taiwan’s industrial adjustments could rejuvenate the country’s economy: upgrade traditional industries by combining ICT, design and brand strategies; promote the newly emerging industries, including biotech, green energy, tourism, healthcare, specialist agriculture and innovation; and promote the service industry.
Guarantee plan reconsidered
The government will decide by the third quarter whether to renew the full deposit guarantee scheme after it expires at the end of the year, Vice Premier Sean Chen (陳冲) said yesterday.
The Financial Supervisory Commission last year extended the full guarantee on deposits from December last year to the end of this year as a part of its efforts to build market confidence. But it said last month it was considering dropping the scheme at the end of this year because the economy was recovering.
According to Chen, many financial institutions are now strong enough to handle any crisis. Therefore, the Central Deposit Insurance Corporation will consider whether to renew the full deposit guarantee program or if other action is needed, he said.
NT gains against US dollar
The New Taiwan dollar gained ground against the US dollar yesterday, rising NT$0.013 to close at NT$32.338.
Turnover totaled US$738 million during the trading session.
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