Tue, Mar 29, 2011 - Page 11 News List

[ BUSINESS BRIEFS ]

Staff Writer, with Agencies

TAIEX inches down

The TAIEX closed down 0.67 percent yesterday, with technology shares leading the slide after Acer Inc (宏碁), the world’s second-largest PC vendor, gave a negative forecast for its first-quarter sales on Friday, dealers said.

The weighted index closed 57.33 points lower, ending the day at 8,553.06, on turnover of NT$78.556 billion (US$2.66 billion).

Acer’s shares plunged by the daily maximum allowed level of 7 percent to close at NT$67.80 on the main index.

Local contract laptop maker Wistron Corp (緯創) also saw its shares tumble 7 percent.

CPC project faces suspension

Local refiner Formosa Petrochemical Corp (台塑石化) could suspend a NT$20 billion investment plan in Taiwan as the government tightens restrictions on exporting oil products, the local Chinese--language Commercial Times newspaper reported yesterday.

Formosa Petrochemical would be forced to suspend the plan to boost capacity at its naphtha crackers after the government’s plan to cut up to 2 million kilo-liters of diesel products a year, the paper said, citing remarks made by company chairman Wilfred Wang (王文潮).

Originally, the oil refiner had planned to boost output from 540,000 barrels a day to 590,000 barrels.

Construction loans set record

The nation’s construction loans hit a fresh high of NT$1.307 trillion last month, the central bank said yesterday.

That means an increase of NT$6.1 billion, compared with NT$1.3 trillion in January, the bank’s data showed.

Construction loans expanded for the 13th consecutive month last month, from NT$1.043 trillion in January, the data showed.

The loans of house buyers reached NT$5.19 trillion last month, down NT$495 million from a month earlier, according to the bank’s data.

BOT signs agreement

Bank of Taiwan (BOT, 台灣銀行) signed an agreement with Industrial and Commercial Bank of China Ltd (中國工商銀行) to cooperate in areas including trade financing, clearing and exchange of information and personnel training, the Taiwanese lender said in a statement on its Web site yesterday.

Mega Bank sells debt

The board of Mega International Commercial Bank (兆豐國際商銀) approved a plan to sell NT$4.7 billion of seven-year subordinated debentures at an annual interest rate of 1.65 percent to meet medium to long-term need for funds, Mega Financial Holding Co, the lender’s parent, said in a statement to the Taiwan stock exchange yesterday.

NT dollar remains steady

The Taiwan dollar yesterday traded near a two-week high, supported by expectations that the central bank will raise interest rates for the fourth time in a year.

The Central Bank of the Republic of China (Taiwan) will raise its discount rate on 10-day loans by 12.5 basis points to 1.75 percent on Thursday, according to all but one of 18 economists surveyed by Bloomberg. Concern about radiation leaks at a crippled nuclear power plant in Japan is weighing on demand for regional assets, according to Eric Hsing, a debt trader at First Securities Inc (第一金證券) in Taipei.

“Taiwan’s yield premium over the US may attract more foreign investors, driving gains in the currency,” Hsing said.

The New Taiwan dollar was little changed at NT$29.499 against the greenback. The currency touched NT$29.440 on Friday, the strongest level since March 10.

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