TAIEX dips 1.13 percent
The nation’s benchmark index closed down 1.13 percent yesterday as institutional investors continued to unload non-tech and financial stocks, dealers said.
The TAIEX fell 100.49 points to 8,782.72, after moving between 8,738.93 and 8,907.11, on turnover of NT$157.98 billion (US$5.3 billion).
The market opened up 0.25 percent and moved to the day’s high in line with other markets in the region, but profit-taking followed and continued to mount after the index briefly breached the strong technical resistance level at 8,900 points, the dealers said.
A total of 3,214 stocks closed down, 1,250 finished up and 312 remained unchanged.
Rexchip supplies Powerchip
Rexchip Electronics Corp (瑞晶) said it has resumed deliveries of memory chips to Powerchip Technology Corp (力晶) after the two companies renegotiated a supply contract.
Powerchip said on Dec. 31 that Rexchip suspended shipments after it failed to pay some bills because of “financial constraints.” Rexchip is a joint venture between Powerchip and Japan’s Elpida Memory Inc.
Rexchip stopped shipments for one week and recommenced supplying to Powerchip after the contract was renegotiated, the Taichung-based Rexchip said.
Powerchip will now only buy 2-gigabit chips, Rexchip said, adding that it used to buy both 1-gigabit and 2-gigabit chips.
Powerchip spokesman Eric Tang (譚仲民) confirmed the resumption of shipments, but declined to elaborate. The company, the nation’s largest memorychip maker by revenue, accounts for about 34 percent of Rexchip’s shipments.
IBT’s Chinese firm approved
The Industrial Bank of Taiwan (IBT, 台灣工銀) has won regulatory approval to set up a lease finance company in China through its venture capital unit, the Financial Supervisory Commission said in a statement yesterday on its Web site.
It will be the first lease finance firm by a Taiwanese lender in China, the commission said in the statement.
The venture capital arm will be the holding company of the lease finance unit, it said.
Mega, PRC bank sign MOU
Mega International Commercial Bank (兆豐國際商銀) yesterday signed a memorandum of understanding with the Bank of China (中國銀行), parent Mega Financial Holding Co (兆豐金控) said in a statement yesterday.
The two lenders will cooperate on promoting syndicated loans, factoring and personnel training, the statement said.
CAL, EVA post robust sales
China Airlines Ltd (CAL, 中華航空), the nation’s largest carrier, said on Thursday that sales last year reached NT$138.14 billion, up 40.8 percent from 2009.
Its rival, EVA Airways Corp (EVA, 長榮航空) also reported that sales last year rose 42.5 percent to NT$104.41 billion — marking the first time that revenues surpassed the NT$100 billion mark.
Last month alone, CAL recorded NT$11.42 billion in sales, up 4.8 percent from a year earlier, while EVA registered NT$8.69 billion in revenue, up 10.4 percent.
“In addition to a global economic recovery, the booming tourism business across the Taiwan Strait served as the driver of the two carriers’ sales growth,” MasterLink Securities (元富證券) analyst Tom Tang said yesterday.
However, Tang warned that rising world crude prices could impact on the bottom lines of global carriers.
According to Hua Nan Securities (華南永昌投顧), fuel expenses account for more than 40 percent of CAL’s and EVA’s operating costs.
From the customer’s perspective, car rental is a straightforward business. The only uncertainty is whether the hire company will charge you for the scratch they discover when you hand back the vehicle. Hertz Global Holdings Inc’s bankruptcy protection filing on Friday last week was a reminder that today even the simplest business models are underpinned by a lot more financial complexity than meets the eye. The proximate cause of Hertz’s demise was of course the sudden collapse in bookings caused by COVID-19 travel restrictions. The company’s monthly revenue last month fell 73 percent year-on-year, a shortfall that even the most resilient
Uber Technologies Inc, Lyft Inc and Airbnb Inc have slashed thousands of jobs. Salesforce.com Inc and Visa Inc are letting employees work remotely for months; Twitter Inc and Square Inc are allowing them to do so for good. For the companies’ hometown of San Francisco, the moves are early signs of a dire blow. In a city with a long history of booms, busts and natural calamities, the COVID-19 pandemic has suddenly upended nearly a decade of prosperity. While municipalities across the US are grappling with economic fallout from the virus, San Francisco stands to take a deeper hit given its high
BULK PURCHASE: The French chain and Hong Kong-based Dairy Farm International reached a deal covering 224 stores, which is expected to be finalized by year’s end Carrefour SA yesterday announced it would acquire Wellcome Taiwan Co (惠康百貨) for 97 million euros (US$108.33 million), and bring all the Wellcome supermarkets (頂好超市) and Jasons Market Place stores nationwide under its banner within 12 months of the deal closing. The France-based hypermarket chain reached an agreement with Hong Kong-based Dairy Farm International Holdings (牛奶國際控股), the pan-Asian retailer that launched Wellcome Taiwan in 1987. The transaction involves 199 Wellcome supermarkets, which have average sales areas of 420m2 and 25 high-end Jasons Market Place stores, which have an average sales area of 820m2, as well as a warehouse in Taoyuan, Carrefour Taiwan (家樂福)
‘ONE-STOP SHOP’: A Miaoli official said that the factory in the Jhunan section of the Hsinchu Science Park would create more than 1,000 jobs and boost prosperity A new high-end IC packaging and testing plant planned by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in Miaoli County is expected to start operations in the middle of next year, Miaoli County Commissioner Hsu Yao-chang (徐耀昌) said. Hsu wrote on Facebook that TSMC, the world’s largest pure wafer foundry operator, would invest NT$303.2 billion (US$10.1 billion) to build the plant, the largest-ever single investment in Taiwan. However, TSMC declined to disclose the financial terms of the deal, while a company board meeting on May 12 approved a spending plan worth NT$168.2 billion as part of its investment plans. Construction of the