TAIEX gains 1.42 percent
The TAIEX closed up 1.42 percent yesterday, led by the bellwether electronics sector, after Wall Street posted further gains overnight, dealers said.
The TAIEX rose 109.39 points to the day’s high of 7,830.21, off a low of 7,770.93, on turnover of NT$132.02 billion (US$4.13 billion).
The market opened up 0.65 percent after Wall Street’s extended momentum and buying accelerated to vault the index past technical resistance at 7,800 points as bargain hunters scrambled to pick up high-tech stocks that had been hit hard by global demand concerns, dealers said.
A total of 2,742 stocks closed up and 1,171 down, with 234 remaining unchanged.
Chunghwa pushes online mall
Chunghwa Post Co (中華郵政) is gearing up efforts to explore the burgeoning online shopping market by vowing to nearly triple sales from its cybermall to NT$50 million (US$1.6 million) this year, from last year’s NT$19 million.
The postal service provider will beef up marketing efforts by kicking off a series of nationwide vendor-enrolment briefings next week, hoping to sign up as many as 700 vendors and sell their products on its online mall by the end of the year.
It currently has only 131 online vendors.
To differentiate itself other competitors, Chunghwa Post said it would mainly promote products in the areas of healthcare, organic food and agriculture.
Vee TIME shows 10,000 users
Local WiMAX operator Vee TIME Corp (威達雲端電訊) yesterday said it has accumulated more than 10,000 customers in four months after the launch of high-speed telecom services, a company statement said.
The result should help perceptions about WiMAX technology and Vee TIME is confident that it will hit the goal of expanding its customer base to 50,000 by the end of this year.
Vee TIME launched its WiMAX service for southern Taiwan in April and will be able to expand its service for users by offering roaming in cooperation with WiMAX operators Global Mobile (全球一動) and Tatung InfoComm Co (大同電信), which provide services in northern and southern Taiwan, respectively.
CPC sells bonds, raises capital
CPC Corp, Taiwan (台灣中油) sold NT$16 billion (US$501 million) of bonds to help increase working capital. The company sold NT$2.7 billion of five-year notes, NT$5.9 billion of seven-year debt and NT$7.4 billion of 10-year securities, vice president Paul Chen (陳綠蔚) said by telephone yesterday.
The five-year notes will pay an annual interest of 1.08 percent, the seven-year bonds 1.29 percent and the 10-year debt 1.43 percent, he said. CPC expects to spend NT$57.6 billion on fixed assets next year, with projects including upgrades of refineries and pipelines, according to the government’s draft budget for next year.
The state-run refiner is rated AAA on the national scale by Fitch Ratings, the credit assessor’s highest investment grade.
NT dollar continues rise
The New Taiwan dollar pared gains after climbing the most in four weeks as the central bank intervened to check appreciation that may hurt exports, said people familiar with the matter who declined to be identified.
The NT dollar rose for a third straight day, up 0.1 percent to NT$32.018 against its US counterpart as of the 4pm close, Taipei Forex Inc said. The currency earlier rose as much as 0.4 percent, the most since Aug. 2.
Turnover was US$539 million in yesterday’s trading.
NOT ALL GOOD: Analysts warned that other data for last month might be less rosy due to the virus and analysts expect the PMI to contract again next month Chinese factory activity saw surprise growth last month as businesses went back to work following a lengthy shutdown, but analysts said that the economy faces a challenging recovery as external demand has been devastated by the COVID-19 pandemic, while the World Bank said that growth could screech to a halt. China is slowly returning to life after months of tough restrictions aimed at containing the virus, which put millions of people into virtual house arrest and brought economic activity to a near standstill. The strict measures saw a closely watched gauge of manufacturing plunge to its lowest level on record in February,
The output of the global smartphone industry this year is to contract by 7.8 percent on an annual basis as the COVID-19 pandemic ushers in a global recession, Taipei-based market researcher TrendForce Corp (集邦科技) said in a report on Monday. The global production of smartphones is expected to fall to 1.29 billion units, as the pandemic dampens demand for consumer electronics, leading to a decline in shipments across Europe and North America, TrendForce said. With consumers delaying smartphone purchases and thereby lengthening the device replacement cycle, overall prices would suffer a setback that is expected to negatively affect the profitability of smartphone
ELECTRONICS Lite-On delays sale of unit Lite-On Technology Corp (光寶科技) yesterday said it would postpone the sale of its solid-state drives (SSD) business to Kioxia Holdings Corp, formerly known as Toshiba Memory Holdings Corp, due to disruptions amid the COVID-19 pandemic. Last year, the Taiwan-based electronics components supplier struck the deal with the Japanese firm, agreeing to sell the unit for US$165 million. Citing unfinished integration work due to the pandemic, Lite-On has deferred today’s closing date until further notice, adding that the delay would not have a negative effect on the unit’s operations. AUTO PARTS Hiroca approves dividend Automotive interior parts supplier Hiroca
ALL ABOUT STRATEGY: The company is optimistic, saying that its gross margin should increase year-on-year, but it is scaling back on its plans to expand capacity Quang Viet Enterprise Co (QVE, 廣越), which makes down jackets and garments for sportswear and outdoor brands including Adidas AG, yesterday said that revenue might drop 5 to 10 percent annually this year as some customers trimmed orders in response to the COVID-19 pandemic. That would mark its first revenue decline since 2016. Quang Viet posted record-high revenue of NT$16.26 billion (US$537.45 million) last year, up 22 percent from 2018. Down jackets made up 40 percent of it revenue last year. North Face Inc and Patagonia Inc are this year likely to reduce orders by 20 to 30 percent from a