Wall Street gains boost TAIEX
The TAIEX closed up 0.37 percent yesterday as buying ignited by overnight Wall Street gains rotated to the bellwether electronics sector, dealers said.
The TAIEX rose 32.70 points to 8,860.49, after moving between 8,834.32 and 8,865.42, on turnover of NT$129.99 billion (US$4.35 billion).
The market opened up 0.22 percent as investors took cues from Wall Street’s more-than two-year overnight high and bargain hunting focused on select high-tech stocks to push the index to the day’s high, dealers said.
However, institutional investors cut their holdings in old economy stocks to compromise the early gains ahead of the nearest technical resistance at 8,900 points, they said.
The machinery and electronics sector scored the highest gains, ending up 0.7 percent. Cement stocks rose 0.3 percent, financial stocks added 0.2 percent and the paper and pulp sector closed up 0.1 percent.
A total of 2,424 stocks closed up and 1,833 were down with 380 remaining unchanged.
Cathay Real Estate buys plot
Cathay Real Estate Development Co (國泰建設) bought a 534 ping (1,762.2m2) plot of land in Taichung for NT$951 million, the company said in a statement to the stock exchange yesterday.
In other real-estate news, BES Engineering Corp (中華工程) won a bid for a construction project at the National United University for NT$388 million, BES said in a separate statement to the exchange.
SAS to list GlobiTech
Sino-American Silicon Products Inc (SAS, 中美晶) said on Tuesday it is planning to list Texas-based subsidiary GlobiTech Inc, with chairman Lu Ming-kuang (盧明光) saying he did not rule out having GlobiTech launch a primary listing on the Taiwan Stock Exchange.
Lu said GlobiTech is expected to deliver a return on equity (ROE) of 20 percent this year and 35 percent next year.
SAS acquired financially troubled GlobiTech, a provider of silicon epitaxy products, for US$45 million in April 2008 and helped turned the company around to post net earnings of about US$1 million last year.
GlobiTech is expecting net income of US$11 million on sales of US$72 million this year, Lu said, predicting sales would rise to US$100 million next year.
Eslite eyes HK expansion
Eslite (誠品), one of Taiwan’s biggest bookstore chains, might expand its operations to Hong Kong in 2012, vice chairwoman Mercy Wu (吳旻潔) said on Tuesday.
The company will likely make a decision on the plan in the first quarter of next year, Wu said.
Talks have also begun on setting up more branches in major Chinese cities and the plans are expected to materialize in three to five years, she said.
Eslite operates 38 bookshops around Taiwan.
FSC approves Elpida’s TDRs
The Financial Supervisory Commission (FSC) said yesterday it had approved an application from Japan-based memory-chip maker Elpida Memory Inc to list its Taiwan depositary receipts (TDRs) on the Taiwan Stock Exchange.
The Tokyo-listed Elpida is planning to issue 180 million to 200 million TDRs, each one of which will represent 0.05 common shares of the company.
If the TDR listing plan goes through, Elpida will become the first Japanese firm to issue depositary receipts in Taiwan.
NT dollar slides
The New Taiwan dollar fell against the US dollar yesterday, down NT$0.005 to close at NT$30.605. Turnover totaled US$825 million during the trading session.
‘ACCORDING TO PLAN’: A company official said that it has set up production sites worldwide to provide services and that its Wisconsin project was going smoothly Hon Hai Precision Industry Co’s (鴻海精密) smart manufacturing center in Wisconsin would begin trial manufacturing in the middle of this year, the company said yesterday, adding that it plans to build a research institute to develop key technologies to support growth over the next five years. Hon Hai, known internationally as Foxconn Technology Group (富士康科技集團), said in an annual report submitted to the Taiwan Stock Exchange that its planned Foxconn Institute for Research in Science and Technology would conduct research into artificial intelligence, next-generation communications, quantum computing, cybersecurity and nano semiconductors in Taiwan. Hon Hai is to make products at the center
TV and online retailer Momo.com Inc (富邦媒體) yesterday said it has set up a new logistics subsidiary, Fu Sheng Logistics Co (富昇物流), to oversee the company’s extensive shipping operations. Leveraging Momo’s 23 satellite warehouses and distribution centers nationwide, Fu Sheng will be in charge of executing the retailer’s same-day shipment plan for deliveries in Taipei, New Taipei City, Taoyuan, Taichung, Tainan and Kaohsiung, Momo said in a press release. Seeking to further shorten its supply chain, the company is to set up another seven satellite warehouses and distribution centers by the end of the year. “Fu Sheng has a fleet of 200 couriers
STAYING AHEAD: Fitch said that TSMC remains technologically ahead of others, but Samsung is building a new chip fab, while China is investing in its domestic industry As escalating US-China tensions and COVID-19-related production disruptions force US technology supply chains to transform, Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) US$12 billion chip fabrication plant in Arizona would be key to spurring greater US production of core semiconductor components, Fitch Ratings said. “We view the US-TSMC alliance as a first step in building a more autonomous US technology supply chain, given high barriers to entry, specifically related to the significant capital and design capability required for leading-edge semiconductor manufacturing,” Fitch said in a statement on Tuesday. “By working with TSMC, US chipmakers will not face the financial burden of incremental investment
E Ink Holdings Inc (元太科技), the world’s sole supplier of e-paper displays for e-readers and shelf labels, posted its best quarterly net profit for the first quarter in nine years amid increased demand during a traditionally slow season. Net profit soared 80 percent to NT$787 million (US$26.23 million) in the quarter ended March 31, compared with NT$438 million a year earlier. That translated into earnings per share of NT$0.69, up from NT$0.39. E Ink posted lower royalty income of NT$371.23 million last quarter from NT$448.74 million a year earlier, a company financial statement showed. E Ink said that it expects royalty income to