TAIEX rises on bargain hunting
The TAIEX closed up 0.63 percent yesterday after bargain hunters turned their attention to big caps, helping the index overcome resistance at the 8,200 mark, dealers said.
The benchmark index rose 51.45 points to close at 8,240.89, after moving between 8,218.75 and 8,286.93 on turnover of NT$143.42 billion (US$4.57 billion).
Aided by Wall Street’s gains overnight, the local bourse opened up 0.64 percent, and the momentum was maintained by buying into large caps, especially old economy stocks, to take advantage of their low valuations, dealers said.
A total of 2,494 stocks closed up, 1,414 finished down and 364 were unchanged.
Inventec to invest in solar cells
Inventec Corp (英業達), a leading Taiwanese contract notebook computer maker, said yesterday it would invest at least NT$3 billion to set up a solar cell unit.
Inventec said in a statement it was setting up the new venture to diversify its business and spur growth as profit margins in the contract computer-manufacturing sector shrink.
The company said it would team up with cellphone maker Inventec Appliances Corp (英華達), electronic dictionary maker Inventec Besta Co (無敵科技), Win Semiconductors Corp (穩懋半導體) and other unspecified investors for the solar cell venture.
Meanwhile, Gigastorage Corp’s (國碩) board of directors approved a plan to invest up to NT$750 million to build plants to produce solar-cell wafers, the maker of compact discs said in a statement to the Taiwan Stock Exchange. The investment will come from its own funds and syndicated loans, according to the statement.
TSMC’s upgrade approved
The Ministry of Economic Affairs has approved Taiwan -Semiconductor Manufacturing Co’s (TSMC, 台積電) application to upgrade its chip production technologies in its plant in Shanghai, China, to 0.18 micron process technology from 0.13 micron, officials at the Investment Commission said yesterday.
TSMC, the world’s biggest contract chipmaker, will become the first Taiwanese chipmaker to use a relatively advanced technology in their Chinese investment after the government relaxed the investment restriction in February.
Officials said the ministry gave its permission because the Shanghai plant was 100-percent owned by TSMC and the chipmaker agreed to fund the technology migration with the Chinese subsidiary’s retained earnings, without resorting to funds from Taiwan.
The ministry yesterday also gave the go-ahead to ASE Test Inc (福雷電子), a subsidiary of Advanced Semiconductor Engineering Inc (ASE, 日月光), to invest US$100 million in its Shanghai plant.
NT rise capped by ‘intervention’
The New Taiwan dollar rose to its highest level in more than two years before surrendering half of the day’s gains on suspected intervention by the central bank.
The bank bought US dollars in late trading, according to two traders familiar with the matter who declined to be identified.
The currency had earlier strengthened by as much as 0.9 percent before a central bank meeting today.
Eleven out of 14 economists surveyed by Bloomberg predicted the bank would raise its benchmark interest rate by 12.5 basis points to 1.5 percent.
The NT dollar closed 0.4 percent higher at NT$31.38 against its US counterpart, according to Taipei Forex Inc.
It was 0.8 percent stronger two minutes before the end of yesterday’s trading session and earlier touched NT$31.21, the strongest level since August 2008.