Tue, May 08, 2012 - Page 11 News List

[ BUSINESS BRIEFS ]

Staff writer, with Agencies

TAIEX falls on EU uncertainties

The TAIEX plunged 2.11 percent yesterday after the results of national elections in France and Greece called into question the future of austerity measures in the eurozone and the Greek bailout package.

The benchmark index closed down 162.87 points at 7,538.08, after moving between 7,608.35 and 7,515.69. Turnover totaled NT$78.67 billion (US$2.68 billion).

The local bourse will likely remain in a correction mode in the short term because the election results may further affect stock markets in Europe and the US, Polaris Securities Co (寶來證券) vice president Wang Chao-li (王兆立) said.

It may also be affected by other issues, such as a government proposal to reimpose a capital gains tax on securities, as well as rising business costs and consumer prices following increases in fuel and electricity prices, Wang said.

All of the market’s eight major stock categories closed down, with financials, machinery and electronics coming under the strongest selling pressure. Financials closed 2.2 percent lower, while machinery and electronics lost 2.1 percent

A total of 1,045 stocks closed up, 3,351 finished down and 185 were unchanged.

Imported oil shipments up 32%

Taiwan, which imports more than 99 percent of the oil it consumes, increased purchases last month to support refining at Formosa Petrochemical Corp (台塑石化).

Shipments rose 32 percent from a year earlier to 29.6 million barrels last month, the Ministry of Finance said yesterday. The country’s oil bill increased 45 percent to US$3.7 billion last month, the ministry said in a statement.

Formosa Petrochemical, the nation’s only publicly traded oil refiner, processed 143,000 barrels more crude a day on average last month than a year earlier as its naphtha crackers operated at full capacity, the company said in a statement on Thursday last week.

CSC signs Roy Hill project

China Steel Corp (CSC, 中鋼) yesterday said it signed an agreement with other Roy Hill Project shareholders in Sydney, after the Taiwanese company announced on April 27 it had invested A$305.2 million (US$310.3 million) for a 2.5 percent stake in the iron ore mine in West Australia.

With the 2.5 percent stake, CSC said it would secure 1.38 million tonnes of iron ore a year from the project, thereby raising its self-sufficiency rate from 2 percent to 7.5 percent, the company said in a statement.

Hancock of Australia owns a 70 percent stake in the project, followed by South Korean steelmaker POSCO and Japanese trading company Marubeni Corp, with 12.5 percent each, and South Korea’s STX Heavy Industries, with 2.5 percent.

Uni-President hires HSBC, UOB

Uni-President China Holdings Ltd (統一企業中國控股), a unit of Taiwan’s largest food company by market value, hired HSBC Holdings PLC and United Overseas Bank Ltd (UOB) to help arrange at least 600 million yuan (US$95 million) of loans in Hong Kong, according to a person familiar with the matter.

The three-year revolving so-called Dim Sum facility has an option to be extended for another two years, the person said.

Uni-President Enterprises Corp (統一企業) owns 73.5 percent of the Hong Kong-listed Uni-President China. Uni-President will use the proceeds from the loan for capital spending in China, the person said.

NT dollar retreats

The New Taiwan dollar fell against the US dollar yesterday, declining NT$0.102 to close at NT$29.382 on turnover of US$1.19 billion.

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