Fri, Jul 02, 2010 - Page 11 News List

Business Briefs

STAFF WRITER WITH AGENCIES

Share prices close lower

Share prices closed 1.02 percent lower yesterday as market sentiment was dampened by Wall Street’s continued weakness overnight amid lingering concerns about the global economy after a weaker US jobs report, dealers said.

The TAIEX fell 75.31 points to 7,254.06, after moving between 7,251.60 and 7,327.40, on turnover of NT$83.32 billion (US$2.58 billion).

The textile sector suffered the heaviest losses, falling 1.9 percent.

“The latest job report [of the ADP Employer Services] is pointing to a possible gloomy payroll data to be released by the US government later this week,” Mega Securities (兆豐證券) analyst Alex Huang (黃國偉) said.

ADP, a US human resources and payroll data provider, reported the US gained 13,000 jobs last month, significantly lower than the estimated 61,000.

“It seems that doubts about the global economy are increasing and concerns over global demand are escalating accordingly,” Huang said. “That’s why investors at home and abroad rushed to dump their stocks.”

Market confidence was further hurt as the local bourse failed to make a comeback after Wednesday’s losses, Huang said.

“I suspect the selling was among foreign institutional investors who have made net sales on the local bourse in recent trading sessions,” Huang said.

Without immediate resolution to the debt problems in Europe, global markets are very likely to remain volatile, he added.

Hong Tai wins four plots

Hong Tai Life Insurance Co (宏泰人壽) yesterday acquired four plots of land in Tamsui, Taipei, totaling 34,664 ping (114,565m²), for NT$8.166 billion (US$252.8 million), or a unit price of between NT$230,000 and NT$241,000 per ping, realtors said yesterday.

Hong Tai owns a total of 77,000 ping of land there — the largest among its peers.

Another bidder, AdvanceTek Development Co (名軒開發), bought the first 7,625 ping plot of land for NT$1.52 billion, or NT$199,000 per ping, realtors said.

Both Hong Tai and Advance­Tek took part in the auctions organized by the Construction and Planning Agency under the Ministry of the Interior to liquidate a total of eight parcels of land there, three of which failed.

Hon Hai approves investment

Hon Hai Precision Industry Co (鴻海), the world’s largest contract manufacturer of electronics, said its board approved plans to invest an additional US$140 million into a Singapore-based unit.

Hon Hai plans to buy a further 140 million shares of Foxconn Image & Printing Product Pte at US$1 each, the Taipei-based company said in an exchange filing yesterday. The transaction is a long-term investment it said, without elaborating.

Meanwhile, Daiwa-Cathay Capital Markets (大和國泰證券) yesterday recommended a “sell” rating on Hon Hai on concerns over the impact of rising wages in China.

The company’s plan to move its plants to inner China for cheaper labor will not save on costs because the base salary offered in Henan is similar to that in Shenzhen, Daiwa-Cathay analyst Calvin Huang (黃文堯) said in a note to clients.

NT dollar weakens slightly

The New Taiwan dollar yesterday slightly weakened by NT$0.019 to close at NT$32.297 against its US counterpart on a possible intervention from the central bank.

Turnover was US$1.001 billion.

In addition, the central bank yesterday issued NT$115 billion in certificates of deposit, more than the NT$94.7 billion that matured, a statement on its Web site said.

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