TAIEX extends momentum
Taiwan’s stock market extended its momentum yesterday from a day earlier on buying by foreign investors, who appeared more willing to take on risk in global equity markets as their concerns over eurozone debt eased, dealers said.
However, the gains were capped by strong technical resistance at about the 7,200-point mark, they said.
The TAIEX closed up 9.34 points, or 0.13 percent, at 7,188.21, after fluctuating between 7,184.38 and 7,212.36, on turnover of NT$88.16 billion (US$2.94 billion).
Investment ranked third
Taiwan’s investment environment ranked third among 50 countries in the world as of last month, according to the US rating company Business Environment Risk Intelligence (BERI).
BERI said Taiwan’s political risk ranked sixth, one notch ahead of the previous rating, indicating that in spite of the heated election campaign, its political risk is seen as heading along a “stable” track.
The report said Taiwan’s operations risk ranked second, the same as in a report released in September, behind only Singapore.
According to BERI analysts, Taiwan’s good ranking could be attributed to anticipated strong expansion in infrastructure investment in the coming two years and more incentives to speed up investment in that area.
An announcement by the Taiwanese authorities that from Jan. 1, Chinese banks are permitted to buy Taiwanese banking and financial holding stakes was a plus for Taiwan’s business environment, BERI said.
In terms of foreign exchange risk, Taiwan was ranked third after Singapore and Switzerland.
Acer posts sales decline
Acer Inc (宏碁), the world’s fourth-largest personal computer vendor, said on Tuesday it posted a 7.61 percent decline in unconsolidated sales for last month from November, reflecting of weakening global demand.
Acer said its unconsolidated sales for the month totaled NT$33.03 billion. The figure was down 5.03 percent from a year earlier.
Last year’s unconsolidated sales fell 22.29 percent from 2010 to NT$405.71 billion, the company said.
Kuozui output sets record
Kuozui Motors Ltd (國瑞汽車), Taiwan’s manufacturer for Japan-based Toyota Motor Corp, produced more than 150,000 units last year, marking a new milestone in Taiwan’s auto industry, according to Hotai Motor Co (和泰汽車) on Tuesday.
Hotai Motor, the Taiwanese sales agent for Toyota, said that Kuozui faced a shortage of materials last year because of Japan’s earthquake and tsunami in March and severe flooding in Thailand.
Kuozui’s car manufacturing output reached 156,917 units last year, worth more than NT$85 billion in total, Hotai said.
Out of the total output, 50,636 units were sold to the Middle East, a record high in Taiwan’s car export market and up from 30,000 units in 2010.
NT dollar hits two-month high
The New Taiwan dollar rose to its strongest level in more than two months after global funds boosted their holdings of Taiwanese shares.
The NT dollar advanced for a seventh day after overseas investors bought US$402 million more equities than they sold in the past three days, according to exchange data.
The local unit strengthened 0.2 percent to NT$29.999 against its US counterpart, according to Taipei Forex Inc. Earlier, it reached NT$29.904, the strongest level since Nov. 1.