TAIEX falls on FPG results
The TAIEX pulled back yesterday amid rising concerns over corporate earnings after the major subsidiaries of the Formosa Plastics Group (台塑集團) reported disappointing results for the first half, dealers said.
Turnover shrank as many investors took to the sidelines, waiting anxiously for the decisions of a policymaking meeting of the European Central Bank that was to be held later in the day, dealers said.
The weighted index closed down 34.81 points, or 0.47 percent, at 7,387.78, after moving between 7,376.45 and 7,426.62. Turnover totaled NT$69.47 billion (US$2.32 billion) during the session.
Foreign exchange reserves up
Despite foreign investors having posted a net outflow of US$345 million last month, Taiwan’s foreign exchange reserves rose US$1.96 billion from a month earlier to US$391.24 billion as of the end of last month, the central bank said yesterday.
“The main factor behind the increase came from the appreciation of the euro and other main currencies versus the US dollar,” Lin Sun-yuan (林孫源), director-general of the central bank’s department of foreign exchange, told a press briefing.
Investment gains also helped increase reserves, Lin said.
For the first half of the year, foreign exchange reserves rose US$5.69 billion compared with the end of last year, data showed.
Gou to sell Sharp shares
Hon Hai Group (鴻海集團) chairman Terry Gou (郭台銘) said he planned to sell up to half of his holdings in Sharp Display Products Corp, which operates a 10th-generation LCD plant in Sakai, Japan, to employees of Hon Hai and Sharp Corp.
Gou holds about a 47 percent stake in Sharp Display.
Gou made the remarks during an interview with Unique Satellite TV. He said such a suggestion was rarely seen in Japan and he would talk to Sharp Display about a possible share offering to its employees.
The share sale would help retain talent, Gou said.
Separately, Foxconn International Holdings Ltd (富士康控股) is set to name company veteran Calvin Chih (池育陽) as its new chief executive after Terry Cheng (程天縱) resigned, Hon Hai said.
UnionPay discounts planned
The Greater Kaohsiung Government’s Tourism Bureau is collaborating with China UnionPay (中國銀聯), a popular issuer of bank cards in China, to offer discounts to card users as part of efforts to boost tourism in the city, officials said on Wednesday.
According to government statistics, 1.04 million Chinese travelers visited the municipality last year and generated about NT$7.56 billion (US$253.02 million) in revenue, a 28 percent increase over 2010.
In 2010, 813,108 Chinese visited, generating NT$5.89 billion.
Taipei Multimedia Show opens
The annual Taipei Multimedia Show opens today at the Taipei World Trade Center, offering a display of the latest consumer electronics by 180 participating companies, the event’s organizers said on Wednesday.
During the four-day show, which runs until Monday, visitors will have a chance to hunt for bargains and browse state-of-the-art products, the organizers added.
NT dollar down slightly
The New Taiwan dollar lost ground against its US counterpart yesterday, declining NT$0.024 to close at NT$29.89 amid concerns over the global economy, dealers said.
Turnover totaled US$600 million during the trading session.