Cellphone stocks drag TAIEX
The TAIEX moved down to end below 7,500 points yesterday as certain large-cap high-tech stocks encountered heavy selling amid concerns over their earnings outlook for the second quarter, dealers said.
Led by Hon Hai Precision Industry Co (鴻海精密), cellphone-related firms ended lower after Hon Hai’s subsidiary, Foxconn International Holdings (富士康), issued a profit warning on the Hong Kong Stock Exchange, dealers said.
Meanwhile, Taiwan Semiconductor Manufacturing Co (台積電) bucked the falling index to boost the local integrated circuit sector after the world’s largest contract chip maker posted better-than-expected earnings for the first quarter, they added.
The TAIEX closed down 40.85 points, or 0.54 percent, at 7,480.50, after moving between 7,459.75 and 7,598.45, on turnover of NT$93.91 billion (US$3.20 billion).
Foxconn eyes Brazil investment
Foxconn Technology Group (富士康) said it is evaluating investment opportunities with Brazilian businessman Eike Batista, the world’s 10th-wealthiest person. Batista said the Taiwanese company is planning investment in a port project in Rio de Janeiro state.
“We’re looking for business opportunities with Mr Batista,” said Simon Hsing (邢治平), spokesman for Taipei-based Hon Hai Precision Industry Co (鴻海精密), the flagship company of the Foxconn Technology Group.
“We are considering all options, including Acu Port, and haven’t decided on the final plan,” Hsing said.
Hsing declined to comment on Batista’s announcement on Thursday that Foxconn intends to build a factory to make car batteries and solar panels in Brazil.
Aviation center opens
An exclusive aviation business center was opened on Thursday at Taipei International Airport (Songshan airport), paving the way for more business jets to use the downtown Taipei airport.
EVA Airways Corp (EVA, 長榮航空), the nation’s second-largest carrier, won the bid late last year to operate the center for 10 years.
It was estimated that about 100 business jets per month would land and take off at the new center in the years ahead amid growing demand, thanks mainly to increased cross-strait travel.
The number of business jets using the airport has been on the rise in recent years, jumping from 192 in 2009 to 686 last year, Civil Aeronautics Administration statistics show.
CCCME plans Taiwan office
The China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME) will soon submit its application to set up a representative office in Taiwan, Chinese Vice Minister of Commerce Jiang Yaoping (蔣耀平) said at the third meeting of the Cross-Strait Economic Cooperation Committee in New Taipei City (新北市) on Thursday.
Jiang said the Taiwan External Trade Development Council has already applied to set up an office in Shanghai, so CCCME will soon follow suit.
NT dollar gains ground
The New Taiwan dollar gained ground against the US dollar yesterday, adding NT$0.08 to close at NT$29.332 as further fund inflows boosted demand for the currency, dealers said.
Expectations are also mounting among traders that the central bank will allow the NT dollar to appreciate further against the US dollar in a bid to counter rising inflationary pressures in the local market, they said.
Turnover totaled US$912 million during yesterday’s trading session.
Merida Industry Co (美利達) has seen signs of recovery in the US and European markets this year, as customers are gradually depleting their inventories, the bicycle maker told shareholders yesterday. Given robust growth in new orders at its Taiwanese factory, coupled with its subsidiaries’ improving performance, Merida said it remains confident about the bicycle market’s prospects and expects steady growth in its core business this year. CAUTION ON CHINA However, the company must handle the Chinese market with great caution, as sales of road bikes there have declined significantly, affecting its revenue and profitability, Merida said in a statement, adding that it would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RISING: Strong exports, and life insurance companies’ efforts to manage currency risks indicates the NT dollar would eventually pass the 29 level, an expert said The New Taiwan dollar yesterday rallied to its strongest in three years amid inflows to the nation’s stock market and broad-based weakness in the US dollar. Exporter sales of the US currency and a repatriation of funds from local asset managers also played a role, said two traders, who asked not to be identified as they were not authorized to speak publicly. State-owned banks were seen buying the greenback yesterday, but only at a moderate scale, the traders said. The local currency gained 0.77 percent, outperforming almost all of its Asian peers, to close at NT$29.165 per US dollar in Taipei trading yesterday. The
RECORD LOW: Global firms’ increased inventories, tariff disputes not yet impacting Taiwan and new graduates not yet entering the market contributed to the decrease Taiwan’s unemployment rate last month dropped to 3.3 percent, the lowest for the month in 25 years, as strong exports and resilient domestic demand boosted hiring across various sectors, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday. After seasonal adjustments, the jobless rate eased to 3.34 percent, the best performance in 24 years, suggesting a stable labor market, although a mild increase is expected with the graduation season from this month through August, the statistics agency said. “Potential shocks from tariff disputes between the US and China have yet to affect Taiwan’s job market,” Census Department Deputy Director Tan Wen-ling
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