Wed, Jan 04, 2012 - Page 11 News List

[ BUSINESS BRIEFS ]

Staff Writer, with Agencies

TAIEX stages rebound

The TAIEX staged a technical rebound yesterday after the government’s National Stabilization Fund intervened to push the market’s benchmark index back above the 7,000-point mark, dealers said.

The government’s share-buying helped turnover rebound from a near three-year low on Monday, with buying focused on select large-cap stocks across the board, they said.

The TAIEX closed up 101.17 points, or 1.46 percent, at 7,053.38, after moving between 7,005.39 and 7,073.79, on turnover of NT$63.65 billion (US$2.10 billion).

Turnover on Monday was NT$50.47 billion, its lowest level since Jan. 20, 2009.

Government bonds rise

Taiwan’s government bonds rose after yields at a sale of five-year debt met traders’ expectations.

The government sold NT$40 billion (US$1.3 billion) of five-year notes at 1 percent, matching the median estimate in a Bloomberg survey. That compared with a rate of 1.08 percent at an October sale of similar-maturity securities. Yesterday’s offer drew a bid-to-cover ratio of 2.13 times, the highest since 2010.

The yield on the 1 percent notes due in January 2017 fell one basis point, or 0.01 percentage point, to 0.992 percent, prices from GRETAI Securities Market show. The rate rose as much as two basis points earlier.

Green Energy revenue declines

Green Energy Technology Inc (綠能科技), the nation’s top solar wafer maker, yesterday said revenue declined 15 percent last month to NT$881 million, from November’s NT$1.04 billion.

On an annual basis, last month’s revenue plunged 57 percent from NT$2.05 billion in 2010.

In the fourth quarter, the solar wafer maker accumulated NT$2.81 billion in revenue, exceeding the NT$2.3 billion forecast by the company in October.

Green Energy said last quarter it had almost consumed the inventory of raw material it bought at higher prices as scheduled, a strategy it adopted to save on costs to fend off the industrial slump.

Last year, Green Energy’s revenues fell 7.68 percent to NT$17.29 billion from NT$18.62 billion in 2010.

Advantech to buy Advansus

Industrial PC maker Advantech Co (研華科技) announced on Monday that it would spend NT$306 million to acquire a 50 percent stake in Advansus Corp (研碩), paying NT$17 for one share, in a move to expand its economies of scale.

Advansus is a joint venture formed in 2006 by Advantech and Pegatron Corp (和碩), one of Taiwan’s top contract makers of PCs, to jointly source components and designs of motherboards.

Advantech said the purchase, which will make Advansus a 100 percent-owned subsidiary, would help it prepare for cross-sector integration in the industry.

Bad loan ratio drops

The nation’s bad loan ratio dropped to 0.45 percent at NT$97.2 billion (US$3.21 billion) at the end of November, from 0.46 percent at NT$98.4 billion a month earlier, the Financial Supervisory Commission (FSC) said yesterday.

Of the 37 domestic lenders, only Cosmos Bank (萬泰銀行), the nation’s largest cash-card issuer, had a bad loan ratio above the 2 percent threshold, at 7.71 percent, the commission said.

The banking sector’s outstanding loans totaled NT$21.39 trillion in November, up NT$92.4 billion from one month earlier, it said.

NT dollar up against greenback

The New Taiwan dollar gained ground against the US currency yesterday, adding NT$0.021 to close at NT$30.294.

Turnover totaled US$490 million during the trading session.

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