Share prices dip slightly
Taiwan share prices fell yesterday, stopping a three-day winning streak on mild profit-taking, but the index still managed to close above 7,100 points, with investors taking advantage of low valuations to recoup some of their early losses, dealers said.
The narrow fluctuation range showed cautious sentiment toward the debt situation in Europe after Italy and France encountered rising borrowing costs, while the possibility that Hungary will seek a financial bailout also worried the market, they said.
The TAIEX closed 10.35 points, or 0.15 percent, down at 7,120.51, after moving between 7,090.47 and 7,139.04, on turnover of NT$87.40 billion (US$2.89 billion).
Creativity key to biotech success
Creativity is the key to success for biopharmaceutical companies in Taiwan, a specialist said at an investment forum yesterday.
Investors and entrepreneurs can greatly reduce expenditure if they think from a different point of view and follow a different business model, said Hsu Ying-chang (許英昌), chairman of BioEpoch Corp (生醫總研), the organizer of the BioTech Investment Forum.
Local biotech companies starting out with less capital, for example, should focus on modifying existing generic drugs rather than pouring money into the research and development of breakthrough drugs, Hsu said.
He encouraged investors to look into improving the application of anti-cancer drugs.
SinoPac posts monthly loss
SinoPac Financial Holdings Co (永豐金控) yesterday posted a net loss of NT$1.32 billion (US$43.54 million) for last month after the banking subsidiary increased bad loan provisions as required by the Financial Supervisory Commission to strengthen risk management.
Bank SinoPac (永豐銀行), the group’s main source of income, set aside NT$1.45 billion in provisions last month, lifting its bad loan reserve ratio to 1 percent from 0.75 percent a month earlier, the parent company said in a filing to the Taiwan Stock Exchange.
The group stayed in the black last year with a net income of NT$3 billion, translating into NT$0.41 earnings per share, falling 40.86 percent from NT$5.08 billion net profit in 2010, the filing said.
Hua Nan to work with Chinese
Hua Nan Commercial Bank (華南銀行), a banking arm of Hua Nan Financial Holdings Co (華南金控), said yesterday it has signed a memorandum of understanding with Guangzhou-based China Guangfa Bank (廣發銀行) related to future business cooperation.
Under the accord, the partners will cooperate in the areas of corporate banking, trade financing, working-capital financing and the establishment of retail outlets. They will also exchange business information and encourage personnel exchanges.
First Financial reports profit
State-run First Financial Holdings Co (第一金控) yesterday reported NT$148 million in net profit for last month, although its securities brokerage subsidiary incurred losses.
The conglomerate owed its net income to its banking arm, First Commercial Bank (第一銀行), which earned net NT$247 million, more than offsetting net losses of NT$52 million at the securities unit, the filing to the Taiwan Stock Exchange said.
Last year, net profits totaled NT$7.56 billion, or NT$1.07 earnings per share, representing a 7.45 percent improvement from the financial results in 2010, based on company statistics.
NT dollar advances
The New Taiwan dollar rose against the US currency yesterday, up NT$0.021 to close at NT$30.245.