Tue, Jun 29, 2010 - Page 11 News List

[BUSINESS BRIEFS]

AGENCIES

Shares up 0.34 percent

Share prices closed up 0.34 percent yesterday as the market staged a technical rebound from heavy losses at the end of last week, dealers said.

The TAIEX rose 26.08 points to 7,500.79 after moving between 7,489.55 and 7,536.61 on turnover of NT$73.80 billion (US$2.30 billion). The index opened 0.43 percent higher as investors took advantage of reduced valuations after the market was hit hard on Friday by a surprise interest rate hike by the central bank, but the upward momentum was compromised as the index moved closer to the strong resistance range of 7,500-7,600 points, dealers said.

The financial sector posted the highest gains, up 2.2 percent.

Concord Securities (康和證券) analyst Allan Lin said that as financial services have been included on Taiwan’s “early harvest” list under the planned trade pact with China, which will give them easier market access to China, buying in the financial sector was obvious during the trading session.

TSMC to buy SMIC shares

Taiwan Semiconductor Manufac­turing Co (TSMC, 台積電), the world’s biggest contract chipmaker, yesterday received the government’s approval to obtain 8 percent share of China’s biggest chipmaker Semiconductor Manufacturing International Corp (SMIC, 中芯), according to a press release from the Ministry of Economic Affairs.

TSMC will be able to receive 1.79 billion SMIC shares listed on the Hong Kong stock market, which the Shanghai-based company offered to settle an lawsuit with TSMC last year, according to the press release.

Earnings in Asia to rise 36%

Earnings at 100 major companies in Asia outside Japan will rise an average of 36 percent this year on a 19 percent increase in sales, Daiwa Securities Group Inc said.

Daiwa’s estimates cover companies in China, Hong Kong, India, South Korea, Singapore and ­Taiwan, including China Mobile Ltd (中國移動), LG Electronics Inc and Taiwan Semiconductor Manufacturing Co (台積電). ­

After-tax profit will likely increase 19 percent next year with an 18 percent jump in revenue, the brokerage said.

“Growing demand in Asia, including China, is the main driver for growth,” Yoshimasa Takashina, one of the authors, told reporters yesterday in Tokyo. “An increase in revenue at South Korean and Taiwanese technology companies will give a further boost.”

NT dollar little changed

The NT dollar ended little changed, paring earlier gains, on signs the central bank intervened in late trading to give exporters a favorable exchange rate.

The NT dollar earlier rose as much as 0.6 percent as exporters repatriated earnings to meet payments for the end of the quarter and stock investors bet on improved ties with China. The local currency closed at NT$32.175 against its US counterpart on turnover of US$743 million.

The currency has lost 1.3 percent so far this quarter as the central bank sold the currency in the final minute of trading most days for more than two months now, said dealers familiar with the central bank’s operations.

Taiwanese banks held NT$283 billion more in reserves than required by the central bank as of Sunday, according to the Taipei Interbank Money Center. The interest rate on overnight interbank loans averaged 0.192 percent, compared with 0.19 percent on Friday.

“There’s still adequate money in the market,” Capital Securities Corp (群益證券) bond trader Baker Tu said. “Short-term interest rates are only climbing very slowly, so the bulls are trying to hang in there.”

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