Thu, Apr 19, 2012 - Page 11 News List

[ BUSINESS BRIEFS ]

Staff writer, with Agencies

TAIEX stages rebound

The TAIEX staged a mild technical rebound yesterday after the Dow Jones Industrial Average posted its largest gains since March 13 to stand above 13,000 points overnight, dealers said.

The gains in the local market were capped after the index reached the day’s high amid lingering worries over inflationary pressure and a government plan to impose a capital gains tax on stock investments, the dealers said.

The TAIEX closed up 19.13 points, or 0.25 percent, at 7,605.00, on turnover of NT$79.11 billion (US$2.68 billion).

By the end of the session, the plastics and chemicals sector had scored the highest gains among the eight major stock categories, finishing up 0.7 percent, while the construction sector closed down 0.9 percent.

LED stocks up on price hike

Shares of LED lighting vendors moved higher in Taipei yesterday after local media reported a surge in orders for several major companies in the sector in reaction to looming electricity rate hikes, dealers said.

According to the Chinese-language Economic Daily News, several major LED lighting firms, such as Everlight Electronics Co (億光電子), Edison Opto Corp (艾笛森光電) and Unity Opto Technology Co (東貝光電), have received large orders from corporate customers who want to cut operating costs through wider use of energy-efficient lighting.

The report said the increase in orders in LED lighting have even boosted demand for LED chips and will lead to full capacity utilization at upstream suppliers in the LED chain in the second quarter.

Shares of Everlight Electronics rose 2.73 percent at NT$63.90 and those of Edison Opto were up 1.40 percent to NT$65.00. Unity Opto moved up 1.20 percent at NT$33.70.

DelSolar to issue 17.2m shares

DelSolar Co (旺能光電), a solar cell and module maker, said yesterday it plans to issue 17.2 million new shares in preparation for a planned debut on the Taiwan Stock Exchange on May 9.

Among the shares issued, 10 percent would be subscribed by employees, while the remaining 90 percent would be sold publicly, the Hsinchu-based company said in a filing to the Taiwan Stock Exchange.

However, it did not say at what price it would sell the new shares.

The company’s shares are currently traded on the smaller Emerging Stock Market, a preparatory board for Taiwan’s two main bourses, and they closed 16 percent higher at NT$23.2 yesterday.

YFY Cayman cuts loan

YFY Cayman Co, a unit of Taiwan’s Yuen Foong Yu Paper Manufacturing Co (永豐餘造紙), reduced a loan to US$150 million from US$200 million after an appreciation in the New Taiwan dollar, company spokesman Yin Kuo-tang (殷國堂) said yesterday.

The local currency has gained 2.5 percent so far this year.

Proceeds from the five-year facility would be used to replenish working capital and for expansion in China. The loan would be split into a US$100 million term facility and a US$50 million revolving credit part, Yin said by telephone.

Bank of Taiwan (臺灣銀行) is helping to arrange the loan, which would pay a rate of 95 basis points more than the London interbank offered rate, Yin said.

NT dollar inches down

The NT dollar fell against the US dollar yesterday, declining NT$0.004 to close at NT$29.546 after the central bank’s intervention helped the greenback erase early losses against the local currency, dealers said.

Turnover totaled US$502 million during the trading session.

This story has been viewed 1860 times.
TOP top