Profit-taking holds back TAIEX
The TAIEX pulled back yesterday as investors pocketed gains posted in the previous session amid lingering concerns over the global economy, dealers said.
The benchmark index closed down 47.30 points, or 0.63 percent, at 7,502.93, after moving between 7,432.52 and 7,594.81 on turnover of NT$128.21 billion (US$4.42 billion).
The cement sector suffered the heaviest pressure, finishing down 4.7 percent. Foodstuffs fell 2.4 percent, construction shares shed 1.9 percent, textiles lost 1.2 percent and the financial sector closed down 1 percent. The plastics and chemicals sector fell 0.3 percent, while paper and pulp stocks rose 0.6 percent. The machinery and electronics sectors closed unchanged.
Cheng Uei to open more stores
Cheng Uei Precision Industry Co (正崴精密) plans to increase its number of retail stores by at least 50 percent by the end of next year as the popularity of Apple Inc’s products grows.
Studio A Inc, which is 51 percent owned by Cheng Uei, currently operates about 70 stores in China, Taiwan, Hong Kong and South Korea, and it is aiming to have 80 outlets by the end of the year, T.P. Liu (劉德斌), an investor relations spokesman for Cheng Uei, said yesterday. Studio A, which is authorized to sell Apple products, plans to increase to about 130 by the end of next year, Liu said.
Shin Kong to sell off debt
Shin Kong Commercial Bank (新光銀行), a wholly-owned unit of Shin Kong Financial Holding Co (新光金控), plans to sell NT$2 billion of subordinated debt to strengthen its financial structure, raise its capital adequacy ratio and medium to long-term funds, according to a Taiwan Stock Exchange statement issued yesterday. The bonds will mature in five to 10 years, it said.
Meanwhile, Ta Chong Bank Co (大眾銀行) plans to sell NT$5 billion of debentures and NT$5 billion of subordinated debt to strengthen its financial structure and boost medium to long-term funds, the Taipei-based lender said in an exchange statement. The bonds will have a maturity of two to 10 years, it said.
Fubon inks cross-strait deal
Fubon Securities Investment Trust Co (富邦投信) has signed an initial cooperation agreement with Haitong International Securities Group Ltd (海通證券) and China Construction Bank (中國建設銀行), parent Fubon Financial Holding Co (富邦金控) said in a statement to the stock exchange yesterday.
An agreement would need approval from the financial regulator, the statement said.
IP Bank to open next year
The government-funded Intellectual Property (IP) Bank venture capital fund is expected begin operating by early next year, the Ministry of Economic Affairs said in a statement yesterday.
The venture capital fund management firm will be established next month and the semi-official Industrial Technology Research Institute (ITRI, 工研院), which is in charge of IP Bank, is talking to possible investors.
The government came up with the IP Bank as the engagement of patent lawsuits has become common in the business world.
Equities drag NT dollar lower
The New Taiwan dollar fell against its US counterpart yesterday, down NT$0.035 to close at NT$29.025, as the local bourse suffered a pullback on foreign institutional selling, dealers said.
The NT dollar traded against the greenback in a narrow range as traders took to the sidelines ahead of a speech by US Federal Reserve Chairman Ben Bernanke at a central bank conference tomorrow, they said.