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.
Gogoro Inc (睿能創意) yesterday launched its first electric bicycle, the Gogoro Eeyo 1, in Taiwan, after unveiling the bike in New York in late May and in France on Tuesday. The company said it would also introduce the series in other European countries such as Germany and the Netherlands. The “Eeyo project” is the fourth of Gogoro’s eight projects that concentrate on smart transportation, which includes Gogoro’s electric scooter, battery swap system and electric scooter sharing service, company founder and chief executive officer Horace Luke (陸學森) told a media briefing in Taipei. “There are various types of city commuters. We will not
BAD RAP: The exchange said Tatung had seriously breached shareholders’ rights and failed to give a satisfactory explanation of its board election dispute Tatung Co (大同) shares yesterday plunged by the maximum daily limit of 10 percent to NT$18.90, the lowest in three months, after the Taiwan Stock Exchange (TWSE) on Tuesday evening changed the company’s classification to a full-delivery stock effective tomorrow. The TWSE’s move follows the company’s failure to give a clear and satisfactory explanation of why it deprived dozens of shareholders of their voting rights during a board election at the annual shareholders’ meeting on Tuesday morning. Under the exchange’s regulations, investors are not allowed to engage in margin trading of a full-delivery stock, TWSE spokeswoman Rebecca Chen (陳麗卿) told
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate