Fri, Oct 29, 2010 - Page 11 News List

[ BUSINESS BRIEFS ]

STAFF WRITER, WITH AGENCIES

TAIEX rises on UMC results

The TAIEX closed up 0.76 percent yesterday, led by large-cap electronics firms after United Microelectronics Corp (UMC, 聯電), the world’s second-largest contract chip maker, announced better-than-expected earnings for the third quarter, dealers said.

The TAIEX rose 63.01 points to 8,354.05, after moving between 8,281.52 and 8,386.29, on turnover of NT$127.53 billion (US$4.14 billion).

The market opened up 0.29 percent on a technical rebound from Wednesday. Buying then accelerated, particularly in select high-tech heavyweights, as investors hoped they would follow UMC and release satisfactory third-quarter results.

A total of 2,085 stocks closed up, 1,777 down and 378 remained unchanged.

Uni-President Q3 profit rises

Uni-President Enterprises Corp (統一企業), the nation’s largest food producer by revenue, said yesterday its January-September net profit rose 37 percent from a year earlier, boosted by higher prices of dairy and bakery products and investment income.

In a statement to the stock exchange, the company said its net profit for the nine months that ended on Sept. 30 was NT$9.91 billion, or NT$2.26 per share, up from NT$7.22 billion or NT$1.65 per share a year earlier. Revenue rose 8.4 percent to NT$36.81 billion from NT$33.97 billion.

Central bank sells bonds

The central bank auctioned NT$40 billion in 20-year government bonds yesterday at a record-low yield of 1.7 percent in as market liquidity remains abundant.

This compared with a yield of 1.79 percent on the 20-year bonds auctioned on Aug. 12, central bank data showed.

Yesterday’s sale of the bonds maturing on Aug. 12, 2020, attracted bids 1.89 times the amount of debt on offer, compared with 1.63 times of the sales of five-year bonds last week, the bank said.

The insurance sector accounted for 37.5 percent of the sale, followed by the securities sector with 30.5 percent, the banking sector with 23.12 percent and the bills finance companies with 8.88 percent, data showed.

The central bank also auctioned NT$30 billion 273-day Treasury bills at a yield of 0.63 percent, compared with a yield of 0.45 percent on the 273-day Treasury bills issued on Sept. 1, bank data showed.

Cathay sets China turnaround

Cathay Financial Holdings Co’s (國泰金控) Chinese operations will take another two years to become profitable, Dow Jones Newswires reported, citing an interview with company president Chen Tsu-pei (陳祖培). Its soon-to-be-opened Shanghai bank branch will likely make a profit within a year of commencement, the agency said.

China Merchants approved

The Financial Supervisory Commission yesterday approved China Merchants Bank’s (招商銀行) application to set up a representative office in Taiwan, the commission said in a statement.

The move makes China Merchants Bank, the sixth-largest lender in China by assets, the third Chinese bank to gain a foothold in Taiwan after Bank of China (中國銀行) and Bank of Communications (交通銀行).

China Merchants Bank may qualify to apply to upgrade into a branch in a year’s time in line with cross-strait banking rules.

NT dollar rises

The New Taiwan dollar trimmed its gains in the last minute of trading on speculation the central bank intervened to check appreciation that might hurt exports.

The NT dollar closed 0.3 percent stronger at NT$30.824 against the greenback, Taipei Forex Inc said. It was trading at NT$30.709 two minutes before the 4pm close.

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