TAIEX closes down
The TAIEX pulled back yesterday as concerns over the regional economy were elevated by China’s move to lower its economic growth target for this year to 7.5 percent, dealers said.
Selling pressure focused on “China concept stocks,” which have close ties with China, as fears escalated that a slower Chinese economy will impact their profitability, they said.
The TAIEX ended down 66.77 points or 0.83 percent at 7,937.97, after moving between 7,860.87 and 8,028.02, on turnover of NT$122.63 billion (US$4.16 billion).
Among the “China concept stocks,” Yulon Nissan Motor Co (裕隆日產) fell 5.68 percent to close at NT$224, chemical fiber maker Ruentex Industries Ltd (潤泰全球) shed 3.55 percent to close at NT$54.30 and Taiwan Cement Corp (台泥) closed down 3 percent at NT$35.55.
More flight attendants needed
Local carriers will recruit more flight attendants during the first half of this year in order to meet the demand generated by an increasing number of regional flights, the carriers said yesterday.
China Airlines Ltd (CAL, 中華航空) is set to hire 150 flight attendants in May, while EVA Airways Corp (EVA, 長榮航空) is recruiting 300 flight attendants later this month or early next month, the companies said.
In addition, Mandarin Airlines (華信航空), a subsidiary of CAL, is recruiting 15 new employees this weekend. TransAsia Airways Corp (復興航空), a mid-sized Taiwanese carrier scheduled to offer more flights in Asia, will hire 70 new crew members early next month, its largest recruitment in three years.
Moody’s likes Everbeauty offer
Svenska Cellulosa Aktiebolaget’s (SCA) binding offer to acquire Taiwanese personal care products company Everbeauty Corp (全日美實業) for 1.9 billion Swedish kronor (US$290 million) is credit positive for the Swedish paper and hygiene products maker, Moody’s said in a statement on Monday.
Moody’s said SCA’s growth prospects from the acquisition would outweigh the initial slight deterioration in its net debt coverage metrics.
SCA, one of world’s largest personal care and tissue manufacturers, announced the acquisition on Feb. 25 on a debt-free basis, as the company aims to expand its personal care business to rapidly growing Asian markets.
Everbeauty has an established presence in Taiwan, China and Southeast Asia through several brands, such as Dr P for incontinence care and Sealer for baby diapers.
SAS signs loan deal
Taiwanese solar wafer maker Sino-American Silicon Products Inc (SAS, 中美晶) signed a deal with a group of banks on a five-year NT$6.2 billion loan and a three-year ¥7.75 billion (US$95.76 million) loan, the company said on Monday in a filing with the Taiwan Stock Exchange.
SAS is using the loans for its acquisition of Covalent Silicon Corp and Covalent Materials Sekikawa, two subsidiaries of Covalent Materials Corp that are engaged in semiconductor wafer manufacturing, it said in the filing.
NT dollar dips
The New Taiwan dollar fell against the US dollar yesterday, declining NT$0.02 to close at NT$29.538 amid concerns over economic growth in the region, dealers said.
The worries drove most of the currencies in the region lower, including the local unit, after China lowered its GDP growth forecast for this year, they said.
It was the first time China had given an economic growth target below 8 percent in eight years.
Turnover totaled US$685 million during the trading session.
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