Thu, Feb 24, 2011 - Page 11 News List

[ BUSINESS BRIEFS ]

Staff Writer, with Agencies

TAIEX drops on unrest

The TAIEX closed down 1.67 percent yesterday amid market jitters over Mideast unrest, dealers said.

The benchmark index fell 144.73 points to 8,528.94, after moving between 8,521.25 and 8,673.20, on turnover of NT$134.087 billion (US$4.53 billion). The plastics and chemicals sector suffered the heaviest losses, ending down 3.76 percent.

A total of 910 stocks closed up, 3,420 finished down and 334 remained unchanged.

Banker cuts Elan price target

Credit Suisse has lowered its price target for Elan Microelectronics Corp (義隆電子) after the Taiwanese maker of chips and touch screens reported disappointing fourth-quarter results.

In a report released on Tuesday, Credit Suisse lowered its price target to NT$38 from NT$46 after Elan reported that it only broke even last quarter.

Credit Suisse also lowered its earnings per share estimates for the company by 19 percent for this year and 23 percent for next year because of Elan’s “slower-than--expected breakthrough” into the tablet and smartphone markets. However, it maintained its “neutral” rating on Elan.

On Elan’s patent infringement lawsuit against Apple Inc, Credit Suisse said that if the court decision or settlement were favorable to Elan, it could give Elan’s earnings a boost this year.

Higher legal expenses also contributed to Elan’s disappointing results. The company spent NT$148 million on legal expenses last year.

Dukang TDRs to trade in March

Dukang Distillers Holdings Ltd (杜康控股) will start trading its Taiwan depositary receipts (TDR) on March 9, according to a company statement yesterday.

The company will issue 130 million TDRs, with each representing one underlying common share. It will decide on the price of the TDRs on Wednesday next week, the company said.

First Worldsec office approved

First Worldsec Securities Ltd (第一金和昇證券) has received approval from China Securities Regulatory Commission to set up a representative office in Shanghai, its Taipei-based parent firm, First Financial Holding Co (第一金控), said in a statement to Taiwan Stock Exchange yesterday.

Motech to source from GCL

Motech Industries Inc (茂迪), the nation’s biggest solar cell maker by market value, signed a contract with the Suzhou unit of GCL Poly Energy Holdings Ltd (保力協鑫新能源) to buy silicon wafers, it said in a statement to the stock exchange yesterday.

Under the agreement, Motech Industries may buy US$1.03 billion of products through the end of 2015, the statement said.

Biotech output hits record high

Taiwan’s biotechnology industry had an estimated output of NT$221 billion last year, the Ministry of Economic Affairs said in a statement on its Web site yesterday.

Investments in the sector last year reached a record-high of NT$30.1 billion, the ministry said.

Global Funeral wins auction

Global Funeral Service Co (國寶服務) yesterday won the third foreclosure auction for the fifth and sixth floors of the Asiaworld Department Store (大亞百貨) in front of Taipei Railway Station for NT$1.22 billion, or NT$612,000 per ping (3.3m2), the Taipei District Court said.

The funeral service provider last month won the second foreclosure auction for the building’s second floor for NT$574 million, or about NT$733,500 per ping.

NT dollar slips

The New Taiwan dollar remained weak against the US dollar yesterday, falling NT$0.015 to close at NT$29.572 on turnover of US$1.257 billion.

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