US Fed remarks hurt TAIEX
The TAIEX fell yesterday as investor confidence was undermined by downbeat comments from the Federal Reserve about the US economy, dealers said.
The TAIEX closed down 53.76 points, or 0.62 percent, at 8,567.28, after moving between 8,559.33 and 8,619.39 on turnover of NT$87.99 billion (US$3.04 billion).
The plastics and chemicals sector suffered the heaviest losses, finishing down 0.96 percent, led by Formosa Plastics Corp (台塑), amid concerns over slowing demand from the China market. Formosa Plastics fell 2.57 percent to end at NT$98.40.
Yageo shares plummet
Shares in Yageo Corp (國巨), an electronics component maker, fell by their down-limit yesterday after the Ministry of Economic Affairs rejected a Kohlberg Kravis Roberts & Co (KKR)-backed takeover of the company, dealers said.
The shares ended the day at NT$12.75 (US$0.44).
The Investment Commission on Wednesday rejected an application from Orion Investment Co (遨睿投資), a joint venture between KKR and Yageo founder Pierre Chen (陳泰銘), to acquire Yageo through a tender offer. The commission said it was concerned by the lack of transparency in deciding the acquisition price and possible deterioration of the company’s capital structure.
Central Bank rebuts MSCI
The central bank said yesterday that the inward and outward flow of foreign capital investment into the Taiwan Stock Exchange, as well as the exchange rate of the New Taiwan dollar, are completely free.
The bank’s statement was in response to a statement by Morgan Stanley Capital International Inc’s (MSCI) on Wednesday that the nation’s stock market was not upgraded to “developed market” because it still lacked full -currency convertibility.
“The local currency market’s lack of full-time convertibility is coming from the practical consideration that the NT dollar is not international reserve money,” the bank said.
Uni-President counting losses
Uni-President Enterprises Corp (統一企業), the nation’s largest food producer, expects to incur losses of NT$340 million from the return, disposal, refund and compensation for products contaminated with plasticizers, the company said in an exchange filing yesterday.
Uni-President also plans to sell stakes in three Chinese ventures to Carrefour China Holdings BV for 110 million yuan (US$15.4 million), the company said.
FCB signs deal with ICBC
First Commercial Bank (FCB, 第一銀行), the banking arm of state-run First Financial Holding Co (第一金控) yesterday inked a cooperation agreement with China’s largest lender — the Industrial and Commercial Bank of China (ICBC, 工商銀行) — to cooperate in trade finance and other business areas, First Bank said in a statement.
ICBC, the largest state-owned bank in China, has assets totaling 13.46 trillion yuan and posted 16.6 billion yuan in net profits last year, the statement said. It ranks seventh on Forbes’ list of the world’s biggest public companies.
The memorandum is the fourth such accord First Bank has signed with Chinese banks. It signed similar agreements with Bank of China (中國銀行), Bank of Communications (交通銀行) and Agricultural Bank of China (中國農業銀行).
NT dollar dips
The New Taiwan dollar fell against the US currency yesterday, shedding NT$0.057 to close at NT$28.936. Turnover totaled US$603 million during the trading session, down from US$806 million the previous session.
Stephen Garrett, a 27-year-old graduate student, always thought he would study in China, but first the country’s restrictive COVID-19 policies made it nearly impossible and now he has other concerns. The cost is one deterrent, but Garrett is more worried about restrictions on academic freedom and the personal risk of being stranded in China. He is not alone. Only about 700 American students are studying at Chinese universities, down from a peak of nearly 25,000 a decade ago, while there are nearly 300,000 Chinese students at US schools. Some young Americans are discouraged from investing their time in China by what they see
MAJOR DROP: CEO Tim Cook, who is visiting Hanoi, pledged the firm was committed to Vietnam after its smartphone shipments declined 9.6% annually in the first quarter Apple Inc yesterday said it would increase spending on suppliers in Vietnam, a key production hub, as CEO Tim Cook arrived in the country for a two-day visit. The iPhone maker announced the news in a statement on its Web site, but gave no details of how much it would spend or where the money would go. Cook is expected to meet programmers, content creators and students during his visit, online newspaper VnExpress reported. The visit comes as US President Joe Biden’s administration seeks to ramp up Vietnam’s role in the global tech supply chain to reduce the US’ dependence on China. Images on
New apartments in Taiwan’s major cities are getting smaller, while old apartments are increasingly occupied by older people, many of whom live alone, government data showed. The phenomenon has to do with sharpening unaffordable property prices and an aging population, property brokers said. Apartments with one bedroom that are two years old or older have gained a noticeable presence in the nation’s six special municipalities as well as Hsinchu county and city in the past five years, Evertrust Rehouse Co (永慶房產集團) found, citing data from the government’s real-price transaction platform. In Taipei, apartments with one bedroom accounted for 19 percent of deals last
US CONSCULTANT: The US Department of Commerce’s Ursula Burns is a rarely seen US government consultant to be put forward to sit on the board, nominated as an independent director Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday nominated 10 candidates for its new board of directors, including Ursula Burns from the US Department of Commerce. It is rare that TSMC has nominated a US government consultant to sit on its board. Burns was nominated as one of seven independent directors. She is vice chair of the department’s Advisory Council on Supply Chain Competitiveness. Burns is to stand for election at TSMC’s annual shareholders’ meeting on June 4 along with the rest of the candidates. TSMC chairman Mark Liu (劉德音) was not on the list after in December last