Sat, Dec 04, 2010 - Page 11 News List

[ BUSINESS BRIEFS ]

STAFF WRITER, WITH AGENCIES

TAIEX closes up slightly

Taiwan’s benchmark TAIEX closed up 0.45 percent yesterday, led by high tech stocks, as investors witnessed strong overnight performances by their counterparts in the US, dealers said.

The index rose 38.24 points to 8,624.01, after moving between 8,618.26 and 8,659.62, on turnover of NT$158.25 billion (US$5.21 billion). A total of 2,079 stocks closed up and 2,195 were down, with 354 remaining unchanged.

Foreign reserves fall

The nation’s foreign exchange reserves amounted to US$379.26 billion at the end of last month, down US$4.58 billion from the previous month, the central bank said in a statement yesterday.

In the statement, the central bank attributed the decline to the depreciation of the euro and other major currencies against the US dollar over the last month.

“The resulting decrease in foreign exchange reserves has been greater than returns from foreign exchange reserves management,” the bank said.

US dollar clearing bank mulled

Taiwan will set up a clearing system with local banks, converting the US dollars held by local lenders to boost currency liquidity, the central bank said in an e-mailed statement on Thursday.

The new measure will be restricted to currency conversions for trade-related purposes, and will “cut foreign-exchange risks” borne by domestic companies, the monetary authority said.

Taipei-based Mega International Commercial Bank (兆豐國際商銀) was authorized to conduct the business starting this month..

Taiwan to enter ‘super cycle’

The TAIEX could rise to 10,000 points next year as improved relations with China boost tourism and increase technology sales, according to Morgan Stanley.

“Taiwan is entering a super-cycle as a beneficiary of the peace dividend,” Morgan Stanley analysts led by Frank Wang (王安亞) wrote in a report yesterday. With closer ties across the Taiwan Strait, the brokerage said tourism provides a “big opportunity” for Taiwan, as more Chinese visitors will increase political stability and cross-strait opportunities.

Taiwan’s technology-oriented stock market is a “good funding vehicle” for global technology companies expanding in China, which may list in Taiwan, Morgan Stanley added.

Honhai to issue bonds

The board of Hon Hai Precision Industry Co (鴻海精密) approved plans to issue up to NT$12 billion in corporate bonds to pay off debt and fund working capital, the Taipei-based company said in an exchange filing on Thursday.

Hon Hai, plans to boost its investments in China by more than US$330 million. The company will invest in Zhengzhou, Chengdu, Hangzhou and Huaian to expand its production of mobile phones, tablet computers, connectors and high-end routers, it said in separate filing on Thursday.

CSBC seeks overseas orders

CSBC Corp, Taiwan (CSBC, 台灣國際造船) is seeking orders from Orient Overseas Container Line (OOCL, 東方海外貨櫃航運), a subsidiary of Hong Kong-listed Orient Overseas (International) Ltd (東方海外國際), the Kaohsiung-based firm said in a statement to the Taiwan Stock Exchange on Thursday.

The local shipbuilding company is in talks to sell ships of 1,800 twenty-foot equivalent container units to OOCL, the statement said.

NT rises against greenback

The New Taiwan dollar rose against the US dollar yesterday, up NT$0.043 to close at NT$30.745.

Turnover totaled US$740 million during the trading session.

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