TAIEX rallies past 8,000
The TAIEX moved higher and ended above the crucial 8,000-point level yesterday, as investors turned upbeat that Greece would strike a deal with its bondholders and avoid a default, dealers said.
While buying in select technology stocks, such as flat-panel manufacturers and PC suppliers, helped the broader market overcome the technical resistance at 8,000 points, sagging interest in financials slowed the index’s climb, they said.
The TAIEX closed up 31.45 points, or 0.39 percent, at 8,016.01, after moving between 7,965.68 and 8,027.08, on turnover of NT$104.90 billion (US$3.56 billion).
TSMC’s February sales up
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday said its unconsolidated revenue increased 5.8 percent to NT$33.58 billion last month from NT$31.75 billion a year ago.
Consolidated revenue was NT$33.86 billion, up 3.6 percent from NT$32.69 billion a year earlier, TSMC said in a statement.
Rexchip plans rights issue
Rexchip Electronics Corp (瑞晶), a Taiwan-based chip manufacturing arm of Japan’s Elpida Memory Inc, yesterday said it plans to raise about NT$6 billion in funds through a rights issue to repay its debts.
The company said it would assign part of the funds as working capital for its day-to-day operations.
Rexchip, a joint venture between Elpida and Taiwan’s Powerchip Technology Corp (力晶科技), is faced with the obligation to repay about NT$15.3 billion in debts by the end of this year.
Rexchip has only about NT$5.8 billion in cash and as much as NT$4 billion in accounts receivable from Elpida.
Rexchip said it had tentatively set the issue price at NT$10, but market analysts said the high price might turn investors away.
Rexchip closed at NT$7.90 yesterday on the emerging market.
China Life wins approval
Taipei-based China Life Insurance Co (中國人壽) on Thursday won approval from China to buy up to US$100 million in Chinese securities as a foreign institutional investor, it said in a stock exchange filing.
That quota is the same as that granted to Shin Kong Life Insurance (新光人壽), the life insurance unit of Shin Kong Financial Holding Co (新光金控), a week ago.
On Thursday, Hua Nan Financial Holdings Co (華南金控) also received approval from the Financial Supervisory Commission for its plans to open a branch in Shanghai to further tap into the Chinese market.
TAITRA to hold ‘MIT’ fair
The Taiwan External Trade Development Council (TAITRA) signed a memorandum of understanding on Thursday with Shanghai authorities on holding a trade fair featuring made-in-Taiwan (MIT) products from April 4 to 8.
More than 800 Taiwan-based companies have registered to participate in the four-day fair, which will feature about 40,000 MIT items, with a special focus on Taiwan’s mechanical industry, according to the state-funded TAITRA, the organizer of the fair.
The previous 13 Taiwanese trade fairs in China organized by TAITRA saw 4 million visitors in total.
NT dollar advances
The New Taiwan dollar rose NT$0.023 to close at NT$29.504 against the US dollar yesterday on turnover of US$536 million.
The greenback opened at NT$29.530 and moved to a high of NT$29.410 before retreating because of central bank intervention, dealers said.
NOT ALL GOOD: Analysts warned that other data for last month might be less rosy due to the virus and analysts expect the PMI to contract again next month Chinese factory activity saw surprise growth last month as businesses went back to work following a lengthy shutdown, but analysts said that the economy faces a challenging recovery as external demand has been devastated by the COVID-19 pandemic, while the World Bank said that growth could screech to a halt. China is slowly returning to life after months of tough restrictions aimed at containing the virus, which put millions of people into virtual house arrest and brought economic activity to a near standstill. The strict measures saw a closely watched gauge of manufacturing plunge to its lowest level on record in February,
The output of the global smartphone industry this year is to contract by 7.8 percent on an annual basis as the COVID-19 pandemic ushers in a global recession, Taipei-based market researcher TrendForce Corp (集邦科技) said in a report on Monday. The global production of smartphones is expected to fall to 1.29 billion units, as the pandemic dampens demand for consumer electronics, leading to a decline in shipments across Europe and North America, TrendForce said. With consumers delaying smartphone purchases and thereby lengthening the device replacement cycle, overall prices would suffer a setback that is expected to negatively affect the profitability of smartphone
ELECTRONICS Lite-On delays sale of unit Lite-On Technology Corp (光寶科技) yesterday said it would postpone the sale of its solid-state drives (SSD) business to Kioxia Holdings Corp, formerly known as Toshiba Memory Holdings Corp, due to disruptions amid the COVID-19 pandemic. Last year, the Taiwan-based electronics components supplier struck the deal with the Japanese firm, agreeing to sell the unit for US$165 million. Citing unfinished integration work due to the pandemic, Lite-On has deferred today’s closing date until further notice, adding that the delay would not have a negative effect on the unit’s operations. AUTO PARTS Hiroca approves dividend Automotive interior parts supplier Hiroca
ALL ABOUT STRATEGY: The company is optimistic, saying that its gross margin should increase year-on-year, but it is scaling back on its plans to expand capacity Quang Viet Enterprise Co (QVE, 廣越), which makes down jackets and garments for sportswear and outdoor brands including Adidas AG, yesterday said that revenue might drop 5 to 10 percent annually this year as some customers trimmed orders in response to the COVID-19 pandemic. That would mark its first revenue decline since 2016. Quang Viet posted record-high revenue of NT$16.26 billion (US$537.45 million) last year, up 22 percent from 2018. Down jackets made up 40 percent of it revenue last year. North Face Inc and Patagonia Inc are this year likely to reduce orders by 20 to 30 percent from a