Technical rebound lifts TAIEX
Share prices staged a technical rebound yesterday, but turnover remained thin amid cautious sentiment ahead of a speech by US Federal Reserve Chairman Ben Bernanke scheduled for later in the day, dealers said.
Many investors are keeping a close eye on whether Bernanke would offer any new measures to stimulate the stagnant US economy, they said.
The weighted index closed up 34.23 points, or 0.46 percent, on turnover of NT$105.65 billion (US$3.64 billion).
Rexchip stays profitable
DRAM chipmaker Rexchip Electronics Corp (瑞晶電子) yesterday reported an after-tax profit of NT$2.73 billion, or NT$0.80 per share, for the first six months of this year.
While that represented a drop of 74 percent from NT$9.09 billion, or NT$3.09 per share, in net income the company made a year ago, Rexchip easily outpaced its rivals, which were deep in red amid falling chip prices.
Rexchip is a joint venture between Japan’s top memory chipmaker Elpida Memory Inc and Taiwan’s Powerchip Technology Corp (力晶科技).
GIO hit by big forex losses
GIO Optoelectronics Corp (啟耀光電), a LCD backlight unit manufacturing arm of Taiwan’s major plastics producer Chimei Corp (奇美實業), yesterday saw its losses expand to NT$476 million in the first half of the year, compared with a loss of NT$33.71 million in the same period last year.
The company attributed it to a huge foreign-exchange loss of NT$1.55 billion in the first half of the year, it said in a stock exchange filing.
Revenues grew about 65 percent to NT$2.91 billion in the first six months, from NT$1.76 billion in the prior year.
Chimei said in a statement said it was studying possible measures to help reduce damage to GIO’s individual shareholders.
Evergreen’s net profit slumps
Evergreen Marine Corp (長榮海運) reported first-half net income of NT$1.39 billion, down sharply from NT$4.03 billion in the same period last year, the company said in a statement to the stock exchange yesterday.
Nan Ya’s net income dips
Nan Ya Plastics Corp (南亞塑膠) reported first-half net income of NT$20 billion, compared with NT$20.5 billion a year earlier, the company said in a statement to the stock exchange yesterday.
Polaris acquisition approved
The Financial Supervisory Commission has approved the acquisition of Polaris Securities Co (寶來證券) by Yuanta Financial Holding Co (元大金控), the parent firm of the nation’s biggest securities brokerage, the regulator said in a statement on Thursday.
The acquisition will help increase economies of scale and operational efficiency, the commission said, adding that it would continue to encourage consolidation.
The acquisition, sized at NT$48.9 billion, will be carried out via a share swap and cash offer.
NT dollar retreats
The New Taiwan dollar slid against the US dollar yesterday, shedding NT$0.019 to close at NT$29.060 in thin trade, on turnover of US$596 million.
“The central bank is probably happy to see the foreign-exchange rates stable at these levels for a month,” said Tarsicio Tong (湯健揚), a Taipei-based currency trader at Union Bank of Taiwan (聯邦銀行).
“With the election campaign set to start next month, I don’t think the central bank wants foreign exchange to become a big issue,” Tong said.