TAIEX closes higher
The TAIEX closed higher yesterday as a rise in financial shares and heavy-weight electronics stocks offset the impact of a Wall Street drop on Friday, dealers said.
With local banks expected to reveal their strategies for investing in China to institutional investors at upcoming briefings, most investors were pinning their hopes on a brighter outlook for domestic banks in the wake of government approval to expand their business in China, dealers said.
The weighted index rose 48.62 points or 0.61 percent to 7,975.93, after moving between 7,924.10 and 8,013.12 on turnover of NT$122.56 billion (US$3.8 billion).
A total of 1,903 stocks closed up and 1,860 were down, with 298 remaining unchanged.
The cement sector posted the highest gains, up 2.6 percent. Financial shares rose 2.2 percent, construction issues moved up 2.0 percent, and textile shares added 1.6 percent.
UMC running at full capacity
United Microelectronics Corp (UMC, 聯電), the world’s third-largest custom maker of chips, will run at full capacity this quarter and has not had cancellations from customers, Richard Yu, head of investor relations at the Hsinchu-based company said by telephone yesterday.
“Customers are being more rational in their requests for capacity allocation whereas previously they had made more inflated allocation requests,” Yu said.
Taiwan Semiconductor Manufacturing Co (TSMC) and UMC are no longer facing a situation where clients are waiting in line to place orders, the Chinese-language Commercial Times reported, citing industry sources it did not name.
Elizabeth Sun (孫又文), deputy spokeswoman for TSMC was not immediately available for comment.
AU Optronics shares drop
Shares in AU Optronics Corp (友達光電), the nation’s second-biggest LCD panel maker, fell 2.1 percent yesterday in trading, closing at NT$28.30, their lowest since April 8 last year.
The stock earlier fell as much as 4.2 percent, leading shares of LCD makers lower across Asia. RBS’s
Jeffrey Toder said panel-maker stocks fell mainly because of concerns about falling LCD prices, rather than the ongoing price-fixing investigation in the US.
AU Optronics said chief executive officer Lai-Juh Chen (陳來助) and the company’s vice chairman Chen Hsuan-bin (陳炫彬) currently face price-fixing charges in the US and were barred from leaving the country yesterday.
Yang Ming sells airline stake
Yang Ming Marine Transport Corp (陽明海運) plans to sell a 12 percent stake in Yangtze River Express Airlines Co Ltd (揚子江快運) for 150 million yuan (US$22 million), the shipping line said in a stock exchange filing yesterday.
Wan Hai Lines Ltd (萬海航運) will sell a 6 percent stake in China-based Yangtze River Express for 75 million yuan, the shipping company said in a separate filing to the Taiwan Stock Exchange.
China Airlines Ltd (中華航空). plans to sell a 25 percent stake in Yangtze River Express for 312.5 million yuan, the carrier said in a filing to the Taiwan Stock Exchange yesterday.
NT down against US dollar
The New Taiwan dollar depreciated against the US dolllar yesterday, down NT$0.033 to close at NT$31.968.
Turnover totaled US$428 million during the trading session.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to
The US stock market has been on a tear, yet the country’s economy is in the dumps. So why do so many people believe — undoubtedly incorrectly — that the stock market has decoupled from reality? The economy many people experience, while bleak, is local, personal and, for the most part, either not publicly traded or plays only a small part in the stock market’s moves. To explain why these personal experiences have so little effect on equity markets, we must look more closely at the market role of the weakest industry sectors. The surprising conclusion: The most visible and economically vulnerable