TAIEX dips on profit concerns
The TAIEX closed down 0.16 percent yesterday amid market concern that higher oil prices and a strengthening New Taiwan dollar could hurt the second-quarter profits of some companies.
The index closed 14.27 points lower at 8,880.27 on relatively low trading volume of NT$96.624 billion (US$3.34 billion).
Hua Nan Securities Co (華南永昌投顧) chairman David Chu (儲祥生) said rising oil prices could erode corporate profits, raise inflationary pressure and hurt demand.
Meanwhile, shares of Yuanta Financial Holding Co (元大金控), which announced its acquisition of Polaris Securities Co (寶來證券) in a NT$48.9 billion (US$1.69 billion) deal on Saturday, fell 3.5 percent to close at NT$20.65, as the market decided the deal was overpriced.
Polaris, however, saw its shares rise 1.21 percent to close at NT$20.85.
Compal Q1 revenue plummets
Compal Electronics Inc (仁寶電腦), the world’s second-largest notebook contract maker, yesterday reported that consolidated sales last month reached NT$66.8 billion.
The figure was up 53 percent from February, but down 14 percent from March last year, it said in a statement.
Total revenue in the first quarter dipped 25 percent from a year ago to NT$163.9 billion amid slower shipments to its major client, Acer Inc (宏碁).
Compal said it shipped 10.4 million laptops in the first quarter.
Synnex posts record sales
Synnex Technology International Corp (聯強國際) reported record sales last month thanks to strong demand for smartphones and other consumer electronic products.
The world’s third-largest distributor of technology products and electronics parts took in NT$28.77 billion in consolidated revenue last month, up 19 percent from the same period last year.
The strong sales last month helped drive the company’s consolidated sales for the first quarter of this year to NT$74.4 billion, its second-highest quarterly revenue on record.
The company’s first-quarter sales soared 20 percent over the NT$62.3 billion recorded in the same period last year, beating market expectations.
Synnex attributed the growth to strong sales of smartphones, tablet computers and semiconductor components.
Chunghwa’s Q1 beats forecasts
Chunghwa Telecom Co (中華電信), the nation’s largest telecoms operator, posted first-quarter profit that beat analyst estimates as a lower tax rate and increased demand for data services helped counter higher costs.
Net income dropped 1.6 percent to NT$11.9 billion from NT$12.1 billion a year earlier, it said in a statement yesterday. The average of four analysts’ estimates compiled by Bloomberg was NT$11.6 billion.
Chunghwa is turning to Internet television, high-speed optical fiber data and value-added wireless services to offset slowing fixed-line and mobile-phone revenues. Net income was helped by a cut in the corporate tax rate to 17 percent from 25 percent, it said in an exchange filing.
Sharp to buy Rechi shares
Rechi Precision Co (瑞智密) yesterday said Sharp Corp would buy 22.7 million new shares issued through a private placement at NT$14.77 each.
The purchase would give the Japanese company a 5.45 percent stake in the Taoyuan-based maker of compressors, Rechi said in an exchange filing.
NT dollar edges down
The New Taiwan dollar dropped NT$0.001 to close at NT$28.992 against the US dollar
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