TAIEX drops on US woes
The TAIEX sank yesterday amid cautious sentiment over the US’ continuing debt crisis as negotiations between the White House and Congress to raise the debt ceiling remained stagnant, dealers said.
The TAIEX closed down 50.29 points or 0.57 percent at 8,767.20 after moving between 8,702.84 and 8,790.68 on turnover of NT$140.79 billion (US$4.89 billion).
The machinery and electronics sector suffered the heaviest losses, finishing down 1.1 percent, while foodstuffs rose 1.1 percent, followed by plastics and chemicals that added 0.8 percent.
Bond sale yield beats forecasts
The government sold NT$30 billion of 20-year bonds at a yield of 1.975 percent yesterday, higher than forecast by traders surveyed by Bloomberg.
The sale of the securities maturing in August 2031 attracted bids for 1.55 times the amount on offer, the central bank said in a statement. The yield compared with the 1.945 percent median estimate in a Bloomberg News survey of six finance companies.
The government last sold 20-year debt in May at a yield of 1.804 percent. That offer had a bid-to-cover ratio of 1.9 times.
The securities industry was the biggest buyer at yesterday’s auction, taking 34.5 percent of the total issuance, surpassing the insurance industry as the biggest holder of new 20-year debt.
Central bank cautions lenders
The central bank yesterday warned lenders to be mindful of risks of consumer loans and mortgages.
Banks shouldn’t cut interest rates to win customers, it said in an e-mailed statement.
Bad loan ratio hits new low
The nation’s bad loan ratio dropped to a new low of 0.48 percent at the end of last month, compared with 0.5 percent a month earlier, the Financial Supervisory Commission said yesterday.
Non-performing loans totaled NT99.5 billion last month, down NT$3.9 billion from NT$103.4 billion in May, increasing the coverage ratio to 199.13 percent, from 187.36 percent, the commission said.
Of the 37 domestic lenders, only one had a bad loan ratio higher than the 2 percent mark, commission said, adding it would step up inspection on the lagging bank.
Aggregate outstanding loans reached NT$20.71 trillion last month, growing NT$27.2 billion from May, it said.
Taiwan Mobile to cut shares
Taiwan Mobile Co (台灣大哥大) yesterday said its board approved a proposal to cut share capital by 10 percent by canceling 380 million shares from its outstanding shares.
The capital reduction aimed to boost shareholder interest, the nation’s No. 2 telecoms operator said in a filing to the Taiwan Stock Exchange. Shareholders will be paid NT$1 per share in cash on Oct. 13.
After the reduction, Taiwan Mobile’s share capital will decline from the current NT$38 billion to NT$34.21 billion.
The company’s board of directors also approved a proposal for NT$7.3 billion in capital spending this year and the formation of a compensation committee to oversee the management salary and rewards, according to the filing.
NT dollar slides
The New Taiwan dollar fell against the US currency yesterday, shedding NT$0.043 to close at NT$28.845 on a technical correction, dealers said.
The TAIEX’s decline on foreign institutional selling after a dive on Wall Street overnight added downward pressure on the NT dollar, they said.
Turnover totaled US$769 million during the trading session, up from US$693 million the previous session.
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
NO VIRUS BLUES: A SEMI Taiwan official said that the virus does not slow down the global semiconductor industry’s investment in manufacturing equipment The production value of the nation’s semiconductor industry is expected to grow 16.7 percent this year from last year, outpacing the global industry’s 3.3 percent growth, industry association SEMI said yesterday. That would help Taiwan safeguard its second spot in the global semiconductor market with a production value of more than NT$3 trillion (US$102.73 billion), SEMI Taiwan president Terry Tsao (曹世綸) told a media briefing in Taipei for the Semicon Taiwan trade show beginning today. The global semiconductor industry’s production value is expected to increase to US$426 billion this year, SEMI said. In terms of semiconductor equipment investment, equipment billings from Taiwanese firms
Intel Corp has received licenses from US authorities to continue supplying certain products to Huawei Technologies Co (華為), a company spokesman said yesterday. Washington has been pushing governments around to world to squeeze out Huawei, saying that the telecom giant would hand data to Beijing for espionage. From Monday last week, new curbs have barred US companies from supplying or servicing Huawei. This week, the state-backed China Securities Journal reported that Intel had received permission to supply Huawei. China’s Semiconductor Manufacturing International Corp (SMIC, 中芯國際), which uses US-origin equipment to make chips for Huawei and other companies, last week confirmed that it had sought
Taipei Times: When do you think the hospitality industry can return to how it was before the COVID-19 pandemic? How does Formosa International Hotels Group (FIH, 晶華酒店集團) fare this quarter and beyond? FIH chairman Steve Pan (潘思亮): The virus outbreak will have a serious impact on business travel, driven mainly by meetings, incentive travel, conferences and exhibitions over the past three decades. For the past six months, many businesspeople have grown used to exchanging information on the Internet, where more people can participate. The trend might sustain for three to five years until people are vaccinated and it is safe to