TAIEX stays above 7,000 points
The TAIEX recovered most of its early losses yesterday to close above the 7,000-point mark as select large cap stocks staged a technical rebound from the previous day’s slump, dealers said.
Dealers said they suspected that government-led funds stepped in to back market heavyweights and shore up investor confidence, which has been jolted by renewed concerns over debt problems in the eurozone.
The weighted index closed down 20.38 points, or 0.29 percent, at 7,008.35, after moving between 6,968.78 and 7,015.76, on turnover of NT$53.22 billion (US$1.77 billion).
HTC denies Beats ‘rumor’
Smartphone maker HTC Corp (宏達電) yesterday dismissed a report by the technology news site CNET alleging that the company had sold back part of its stake in Beats Electronics LLC because it could not fulfill its financial commitments to the US audio firm.
“The report was a rumor,” HTC public relations manager Jessica Pan (潘瑞蓮) said by telephone.
HTC acquired a 51 percent stake in Beats Electronics for about US$309 million in August last year. However, the company announced on Sunday that it would sell nearly half of its stake back to the US company for US$150 million, with an investment loss of US$4.88 million.
HTC shares closed down 2.26 percent at NT$280.50 yesterday, declining 42.25 percent this year to date and 68.87 percent from a year ago, Taiwan Stock Exchange data showed.
CPC to sell NT$16.5bn in bonds
CPC Corp, Taiwan (CPC, 台灣中油) announced yesterday that it had sold NT$16.5 billion (US$547.9 million) in corporate bonds. The refiner said it planned to use the proceeds to boost its working capital.
The sale of NT$16.5 billion in bonds is made up of NT$4.2 billion in five-year bonds, NT$3.6 billion in seven-year bonds and NT$8.7 billion in 10-year bonds, CPC said in a statement on the Ministry of Economic Affairs Web site.
CPC will pay an annual coupon rate of 1.18 percent for the five-year bonds, 1.29 percent for the seven-year bonds and 1.42 percent for the 10-year debt, according to the statement.
AU Optronics sells solar stake
AU Optronics Corp (友達光電), the nation’s No. 2 LCD panel maker, said on Monday it planned to sell all of its stake in a Chinese solar company for 226 million yuan (US$35.39 million) via its Japanese solar wafer manufacturing arm M. Setek Co.
AUO said in a statement to the Taiwan Stock Exchange on Monday that it would sell all of its holding in Hebei Ningjin Songgong Semiconductor Co (河北寧晉松宮半導體) to JA Solar Holdings Co (京澳太陽能), another major shareholder in the Hebei-based solar firm, in a bid to better utilize its assets.
AUO said the sale would not undercut the company’s strength in the solar business.
FSC fines Cathay Bank NT$2m
The Financial Supervisory Commission (FSC) yesterday fined Cathay United Bank (國泰世華銀行), the banking arm of Cathay Financial Holding Co (國泰金控), NT$2 million for lax internal control in approving loans for related borrowers.
Banking rules require that loan applications of NT$100 million (US$3.33 million) or more must win board approval. The lender failed to win board approval when reviewing loans applications from related borrowers, the commission said.
NT drops against greenback
The New Taiwan dollar continued a slide against the US dollar yesterday, declining NT$0.021 to close at NT$30.116.
Turnover totaled US$896 million during the trading session.