Fri, Jul 15, 2011 - Page 11 News List

[ BUSINESS BRIEFS ]

Staff Writer, with Agencies

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.

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