Tue, May 24, 2011 - Page 11 News List

[ BUSINESS BRIEFS ]

Staff Writer, with Agencies

TAIEX falls 1% on debt worries

The TAIEX fell yesterday over fears about the European debt crisis and the volcanic eruption in Iceland, dealers said.

The weighted index fell 89.52 points, or 1.01 percent, to 8,747.51 points on turnover of NT$93.451 billion (US$3.23 billion).

Major tourism investment seen

Taiwan expects US$4 billion of investment in tourism infrastructure, including hotels, over the next five years, Straits Exchange Foundation chairman Chiang Pin-kung (江丙坤) said yesterday.

MediaTek buys China building

A unit of MediaTek Inc (聯發科) signed a contract to purchase an office building for 412 million yuan (NT$1.835 billion) in Beijing, the parent company said in a statement to the Taiwan Stock Exchange yesterday.

Global Mall to sign loan

Global Mall, a unit of Kindom Construction Co (京城建設), plans to sign NT$4.5 billion of syndicated loans with four banks including Land Bank of Taiwan tomorrow, the parent company said in a statement to the Taiwan Stock Exchange yesterday.

TCB sells NT$10bn in debt

Taiwan Cooperative Bank (TCB, 合作金庫銀行) sold NT$10 billion of seven-year unsecured subordinated debt to raise its capital adequacy ratio, the lender said in a statement to the stock exchange yesterday.

The NT$7.3 billion tranche will carry an interest rate 0.15 percentage points over the 90-day commercial paper rate, with the remaining NT$2.7 billion at an annual interest rate of 1.65 percent, it said.

China tourists to boost economy

The forthcoming deregulation of cross-strait travel could increase the number of Chinese tourists coming to Taiwan, setting the stage for real-estate and consumption expansions, Barclays Capital said yesterday in a statement.

The number of Chinese visitors could climb to 3 million this year and 4 million next year, from 1.6 million last year, after independent Chinese tourists are allowed to visit from next month, the global financial institution estimated.

The policy change will benefit the local service and property sectors with more jobs, as seen in Singapore following a similar deregulation in 2004, Barclays Capital said.

Nanya stock faces downgrade

Shares in Nanya Technology Corp (南亞科技), a memorychip maker, fell to their lowest since 2008 on concern that the Taiwan Stock Exchange could restrict trading because of a decline in book value per share, said Daniel Lu, an analyst at Mega Securities Co (兆豐證券).

The stock slid 6.5 percent to NT$11.60, its lowest since Nov. 25, 2008. The exchange could declare Nanya to be a “full-delivery” stock, barring trading of the shares using brokerage loans or short-selling. Under exchange rules, a company can be classified as a “full-delivery” stock if its book value per share falls below NT$10 for two consecutive quarters. Nanya’s book value-per share was NT$5.85 in the first quarter and NT$8.11 in the fourth quarter of last year, according to Bloomberg data.

NT dollar falls 0.8 percent

The New Taiwan dollar slid the most in a single day in two years as global funds reduced holdings of the nation’s assets on concerns that Europe’s worsening debt crisis would dampen appetite for emerging-market assets.

“Problems from Europe dampened risk appetite today,” said Tarsicio Tong (湯健揚), a Taipei-based currency trader at the Union Bank of Taiwan (聯邦銀行).

The Taiwan dollar fell 0.8 percent, the most since April 2009, to NT$29.009 against the US greenback as of the 4pm local close, according to Taipei Forex Inc.

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