TAIEX up amid low turnover
The TAIEX moved in a narrow range yesterday amid lingering concerns over global demand, although the index closed in positive territory, dealers said.
A warning from Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chip maker, about possible inventory adjustments has made investors more wary of the outlook for corporate earnings, they said.
The reduced turnover indicated many investors are staying on the sidelines, watching anxiously how companies in Taiwan and Wall Street report their second quarter results and give guidance for the third quarter in the coming week, they added.
The weighted index closed up 16.11 points, or 0.23 percent, at the day’s high of 7,164.68, off an early low of 7,130.71, on turnover of NT$46.22 billion (US$1.54 billion).
EVA re-launches Myanmar flight
EVA Airways Corp (EVA, 長榮航空), the nation’s second-largest air carrier, said on Thursday it would re-launch direct flights between Taipei and Yangon, Myanmar, on Oct. 9, after it stopped the service 11 years ago.
The carrier is to operate three flights a week on the route according to a company press release.
EVA said demand from business passengers will drive up the route’s passenger load as more international companies eye Myanmar’s business potential as the country moves toward a market economy.
Rival China Airlines Ltd (中華航空) in May increased its Yangon service to four weekly flights from three and is considering raising the number to five in the middle of September to meet rising customer demand, according to people close to the situation.
EVA said in the release that it would initially fly a McDonnell Douglas MD-90 aircraft on the Taipei-Yangon route and planned to transfer to an Airbus 321 in the second quarter next year.
IT sector outlook gloomy: survey
The country’s information and communication technology companies hold a gloomy view of the economic outlook for the next three months, according to the results of a survey released on Thursday.
The research, conducted by the Taipei Computer Association (TCA, 台北市電腦公會) between June 18 and June 27 among 1,245 exhibitors at Taipei’s Computex, which took place between June 5 and June 9, found that 50 percent of respondents were pessimistic for the July-to-September period, while 23 percent were optimistic and 27 percent had no opinion.
Moreover, the business climate index — which is compiled by the TCA — fell 0.33 points to 1.29 for the third quarter of the year, from 1.62 in the previous quarter, making it the second-lowest figure since the survey was first conducted in the fourth quarter of 2010.
China Life income growth flat
China Life Insurance Co (中國人壽), the nation’s fourth-largest insurance company by market share, earned NT$1 billion net income in the second quarter, which was flat from three months earlier, the company said in a statement on Thursday.
Cumulative net profits equaled NT$2.01 billion, translating into earnings of NT$0.89 per share, the Taipei-based insurer said.
First-year premiums amounted to NT$34.84 billion as of the end of last month, lifting total gross premiums to NT$61.92 billion, it said.
NT dollar weakens
The New Taiwan dollar weakened against the US dollar yesterday, declining NT$0.011 to close at NT$29.995.
Turnover totaled US$491 million during the trading session.