Potential rate hike spurs TAIEX
The TAIEX closed up 0.70 percent yesterday, led by the financial sector on hopes that rising interest rates would widen interest rate spreads and boost banks’ earnings, dealers said.
The index rose 62.91 points to close at 8,988, after moving between 8,887.03 and 9,003.45, on turnover of NT$129.19 billion (US$4.45 billion).
The market opened down 0.39 percent and moved to the day’s low on follow-through selling from the previous session, but bargain hunting emerged.
A total of 2,339 stocks closed up, 1,978 finished down and 426 were unchanged.
Epistar to sell five-year bonds
Epistar Corp (晶電) plans to sell as much as US$280 million in five-year convertible bonds, a person familiar with the matter said, adding that the sale could push through by yesterday.
Barclays PLC is managing the sale of the zero-coupon bonds, said the person, who asked not to be identified because the details were private.
Investors can hand the notes over for stock if Epistar’s shares rise between about 25 percent and 30 percent, the person said.
Investors have the right to sell the bonds back to the company after three years, the person said.
Yieh Phui to invest NT$500m
Yieh Phui Enterprise Co (燁輝), the nation’s largest manufacturer of galvanized steel, approved a plan to invest NT$500 million in a steel unit, the company said in a statement to the stock exchange yesterday.
Hua Nan plans China bases
Hua Nan Financial Holdings Co (華南金控) said on Monday it was planning to set up three bases in China over the next three years.
Aside from establishing its first base in Shenzhen, Guangdong Province, Hua Nan Financial chairman Wang Rong-jou (王榮周) said the company was looking at the Yangtze River Delta, Fujian Province, Bohai Bay and Sichuan Province as possible locations for the two other bases.
Wang said Hua Nan would likely finalize the location of the second base by the end of next year. He added that the company had made business expansion in China a priority in its development plans for the next five years.
Chunghwa buys equipment
Chunghwa Telecom Co (中華電信), the nation’s largest telecom services operator, bought NT$530 million worth of network equipment from Taiwan International Standard Electronics Ltd (台灣國際標準電子) yesterday, the company said in a statement to the Taiwan Stock Exchange.
Some herbal drugs unsafe
Eleven out of 144 samples of Chinese herbal medicines tested by China Medical University last year failed to pass safety checks, an expert said yesterday.
Among the 11 samples, six were found to contain steroids, two contained heavy metals and mercury was detected in one of the samples, assistant professor Yu Chien-chih (余建志) said.
About 90 percent of the ingredients in Chinese herbal medicines sold in Taiwan is imported from China, amounting to 4.4 tonnes per year, Yu said.
As such, the safety of Chinese medicines was one of the most important aspects of the medical cooperation pact that Taiwan signed last year with China, Yu said.
He advised people to exercise caution when buying Chinese medicine, choosing those that carry the GMP safety logo and consulting a qualified doctor before taking the medicine.
Residues of heavy metals and pesticides could cause anemia, acute renal failure and problems in the nervous and digestive systems, Yu said.
END TO SPECULATION: The hotel’s management contract has been extended, despite reports that it wanted to end its alliance with Hyatt Hotels over a deal with Riant Capital Singapore-based Hong Leong Hotel Development Ltd (豐隆大飯店股份) yesterday said it has extended a management contract to ensure the continued presence of the Grand Hyatt brand in Taipei, ending rumors that the two sides were parting ways. “We are pleased Hyatt is able to come to terms on the extension of the management contract of Grand Hyatt Taipei,” said Kwek Leng Beng (郭令明), executive chairman of City Developments Ltd (城市發展) and Millennium & Copthorne Hotels Ltd (千禧國敦酒店). Hong Leong Hotel Development is a subsidiary of Millennium, and both fall under the Hong Leong Group (豐隆集團). The Grand Hyatt Taipei (台北君悅大飯店), owned and built by
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
Nintendo Co is raising its target for Switch production to about 25 million units this fiscal year, people familiar with the matter said, as the ongoing COVID-19 pandemic keeps lifting demand and component shortages ease. The Kyoto, Japan-based company, which in April hiked orders to 22 million units by March next year, is asking partners to tack on another few million units, said the people, who did not want to be identified discussing internal goals. Assembly partners plan to work at maximum capacity through December. The new production target suggests that Nintendo is likely to outperform its Switch sales forecast of 19 million
NERVOUS MARKET: With the infection sources still unknown for three COVID-19 cases that had departed Taiwan, investors have become uneasy, an analyst said Local shares yesterday came under heavy downward pressure, falling more than 1 percent as renewed fears over a possible increase in domestic COVID-19 infections hit market sentiment after the nation last week reported a case related to a Belgian national. Selling focused on the bellwether electronics sector, led by contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), which pushed down the broader market as investors ignored gains posted by tech heavyweights on the US market at the end of last week, dealers said. The TAIEX closed down 151.77 points, or 1.2 percent, at 12,513.03, on turnover of NT$231.43 billion (US$7.84 billion). Foreign