TAIEX closes down 0.08%
The TAIEX recouped some of its early losses yesterday on the back of interest in the old-economy sector, while the bellwether electronics sector remained haunted by lingering concerns over slowing global demand, dealers said.
Possible further monetary loosening measures by the US Federal Reserve created concern among investors that the New Taiwan dollar will continue to rise on ample funds, which will impact the country’s global competitiveness, in particular in the high-tech sector, they said.
The TAIEX closed down 6.71 points, or 0.08 percent, at 8,481.35, after moving between 8,410.44 and 8,531.96 on turnover of NT$120.05 billion (US$4.15 billion).
MediaTek shares rebound
Shares of MediaTek Inc (聯發科), one of the nation’s leading integrated circuit designers, staged a rebound yesterday from the previous session after the company announced a buyback plan to bolster the share price, dealers said. The stock closed up 4.45 percent at NT$258.
MediaTek announced on Wednesday that it would buy back 8 million shares at NT$247 and NT$371 from the open market between yesterday and Sept. 13 by spending up to NT$3 billion. The buyback announcement came after the stock ended on Wednesday at a new low of NT$247 since February 2009.
Coretronic to buy back shares
LCD display maker Coretronic Corp (中光電) plans to buy back 30 million common shares, or 4.14 percent of its outstanding stock, the Hsinchu-based company said in a statement yesterday.
It said it plans to repurchase the stock at between NT$23.59 and NT$66.06 from today to Sept. 14.
Nomura foresees settlement
Nomura Securities said yesterday that Taiwanese smartphone maker HTC Corp (宏達電) would seek a settlement with Apple Inc after the iPhone maker filed two patent complaints against it.
“For now it is difficult to foretell the outcome of the patent battle, but I think HTC will try to reach a settlement with Apple to avoid a ban on sales of its products in the United States, which accounts for a big part of its revenue,” Nomura analyst Aaron Jeng (鄭明宗) told reporters.
North America constituted 50.6 percent of HTC’s total revenues last year, compared with 32.3 percent from Europe and 17.1 percent from Asia and other regions, dealers said.
China Merchants MOU inked
First Commercial Bank (第一銀行) said yesterday it had signed a memorandum of understanding (MOU) on business cooperation with China Merchants Bank (招商銀行).
The two will promote personnel exchanges and share resources and market information in a bid to build a platform for providing a wider range of financial services between Taiwan and China, First Commercial said in a statement.
The move came after China Merchants Bank president Ma Weihua (馬蔚華) visited First Bank chairman Joseph Tsai (蔡慶年) last month.
First Bank has also set up partnerships with Bank of China (中國銀行), Bank of Communications (交通銀行), Agricultural Bank of China (中國農業銀行) and Industrial and Commercial Bank of China (中國工商銀行).
NT dollar gains
The New Taiwan dollar rose against the US currency yesterday, adding NT$0.061 to close at NT$28.839 as foreign banks dumped the greenback, betting that further fund inflows would continue to boost the local currency, dealers said. Turnover totaled US$717 million during the trading session, down from US$798 million.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
Sony Corp has cut its estimated Play Station 5 (PS5) production for this fiscal year by 4 million units, down to about 11 million, following production issues with its custom-designed system-on-chip (SOC) for the new console, people familiar with the matter said. The Tokyo-based electronics giant in July boosted orders with suppliers in anticipation of heightened demand for gaming in the holiday season and beyond, as people spend more time at home due to the COVID-19 pandemic. However, the company has come up against manufacturing issues, such as production yields as low as 50 percent for its SOC, which have cut into
HEAVY INVESTMENT: Moody’s affirmed the firm’s ‘Aa3’ rating with a ‘stable’ outlook due to its leading position in the industry and ability to match customer requirements Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) revenue this year is expected to increase about 21 percent to NT$1.29 trillion (US$44.01 billion) from NT$1.07 trillion last year, driven by strong demand for advanced 5-nanometer and 7-nanometer chips mainly used in smartphones and high-performance computing devices, a Moody’s Investors Service report on Wednesday said. TSMC’s rate of revenue growth next year is to increase to 7.5 percent, the ratings agency said. The company, which supplies 5-nanometer chips for Apple Inc’s new iPad series, has introduced the advanced chips ahead of its competitors and gained a significant share of the market for the foundry industry’s
O2O BICYCLE SHOW: The Taiwan Bicycle Show next year is to be online to offline, with forums, audio-visual conferences and livestreaming of the offline events Local bicycle makers expect demand to continue outpacing supply due to orders triggered by the COVID-19 pandemic, with some companies seeing orders back up through next year. “Next year is all full in terms of orders. Our lead time on components is one year,” Giant Manufacturing Co Ltd (巨大機械) chairwoman Bonnie Tu (杜綉珍) told a news conference in Taipei organized by the Taiwan External Trade Development Council (TAITRA) to announce next year’s Taipei Cycle Show. The pandemic has reduced bicycle supplies and increased demand around the world, Robert Wu (吳盈進), chairman of KMC (Kuei Meng) International Inc (桂盟國際), one of the world’s