TAIEX rises above 7,000 mark
The TAIEX staged a technical rebound yesterday from heavy losses seen a session earlier and closed above the psychological 7,000-point mark as investors embraced hopes that an upcoming summit of the European Commission can figure out a solution to the debt crisis in the region, dealers said.
Buying on the local bourse focused on select large cap stocks in the petrochemical, food and flat panel sectors, prompting the market to suspect the government stepped in to lend support during trade to help the market return to the 7,000-point level, they said.
The TAIEX rose 76.72 points or 1.1 percent to close at 7,033.00 points, after moving between 6,992.27 and 7,046.39, on turnover of NT$76.43 billion (US$2.53 billion).
Chinatrust profits up
Chinatrust Financial Holding Co (中信金控), the nation’s third-largest financial services provider, posted NT$2.38 billion (US$78.86 million) in net profit last month, more than double the earnings one month earlier, thanks to successful investments and growing income from fees, the company said in a statement yesterday.
The bank-centric conglomerate also benefited from its recent acquisition of MetLife Taiwan Life Insurance Co (大都會人壽), which generated a NT$258 million profit, the statement said.
For the first 11 months, net income totaled to NT$17.76 billion, translating into NT$1.57 earnings per share, the statement said.
Chinatrust Commercial Bank’s (中國信託商銀) bad loan ratio dropped to 0.33 percent last month, from 0.36 percent in October, while the coverage ratio rose to 357.74 percent from 327.08 percent, it said.
Mobile payment on horizon
Taiwan’s largest telecoms operator plans to team up with the metro card operating company and Mastercard to offer a new service that would allow customers to use their handsets as credit/debit cards.
Chunghwa Telecom Co (中華電信) said yesterday it would team up with Easycard Corp (悠遊卡公司) and MasterCard Paypass to introduce a mobile payment service — a method of payment that is common in Japan.
However, initially, the service would be available only to iPhone4/4S users. The phone would be encased in an Easy, Near Field Communication (NFC) and Paypass cover, which can be used to pay metro fares and purchase goods, Chunghwa said.
Chunghwa said it hopes handset manufactures would allow the insertion of a mobile payment chip in the future to provide customers with a more convenient service.
Acer confident on outlook
PC brand Acer Inc (宏碁) intends to ship 10 percent more notebook computers next year and remain profitable thanks to sales of ultra--thin laptops and demand from emerging markets, chief executive officer and chairman J.T. Wang (王振堂) said yesterday.
Wang told Dow Jones Newswires in an interview that the company’s strategy to expand market share would now focus more on improving profit margins rather than low prices.
Powertech files lawsuit
Powertech Technology Inc (力成科技), the nation’s biggest computer memorychip packager, filed a declaratory action and breach of contract lawsuit in the US District Court, Northern District of California, against Tessera Technologies Inc, the Taiwan-based company said in a statement to the Taiwan Stock Exchange yesterday.
NT dollar makes gains
The New Taiwan dollar gained ground against the US dollar yesterday, rising NT$0.057 to close at NT$30.168.
Turnover totaled US$444 million during the trading session.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
Nintendo Co is raising its target for Switch production to about 25 million units this fiscal year, people familiar with the matter said, as the ongoing COVID-19 pandemic keeps lifting demand and component shortages ease. The Kyoto, Japan-based company, which in April hiked orders to 22 million units by March next year, is asking partners to tack on another few million units, said the people, who did not want to be identified discussing internal goals. Assembly partners plan to work at maximum capacity through December. The new production target suggests that Nintendo is likely to outperform its Switch sales forecast of 19 million
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president