Thu, Jul 26, 2012 - Page 14 News List

[ BUSINESS BRIEFS ]

Staff writer, with Agencies

TAIEX falls under 7,000 points

A sell-off of high-tech stocks dragged down the broader market in Taipei yesterday, with the benchmark TAIEX falling below the 7,000-point mark as concerns over global demand persist, dealers said.

Companies in the Apple supply chain, in particular, came under pressure after the US consumer electronics giant reported disappointing results for the quarter ending June 30, they said.

The index closed down 29.22 points, or 0.42 percent, at 6,979.13, after moving between 6,922.73 and 7,036.95, on turnover of NT$65.61 billion (US$2.17 billion).

Quanta shares fall

Shares in Quanta Computer Inc (廣達), the world’s largest notebook original design manufacturer, moved lower yesterday on news that chairman Barry Lam (林百里) plans to sell 13 million global depositary receipts (GDRs), the equivalent of 65 million Quanta shares, accounting for 1.67 percent of the company’s total issued shares.

Quanta spokeswoman Carol Hsu (許昭瑾) said Lam’s move reflected his own personal asset allocation strategy.

Hsu said the Lam family holds more than 30 percent of Quanta and the GDR sale was expected to have only a limited impact on the company’s share price.

Quanta shares closed down 2.16 percent at NT$72.50.

Media reports said the GDRs were priced between US$11.46 and US$11.79, which represented a 4.2 percent to 6.9 percent discount on Quanta’s closing price of NT$74.1 on Tuesday.

BLI hires BNY Mellon

BNY Mellon, a global leader in investment management and investment services, has been appointed by the Bureau of Labor Insurance (BLI) to provide custody and investment administration solutions for Taiwan’s National Pension -Insurance Fund, which has assets totaling US$1 billion.

“Taiwan continues to be a dynamic market as its funds industry becomes increasingly globalized,” Leow Chong-jin (廖崇仁), head of Asia at BNY Mellon Asset Servicing said yesterday. “As Taiwanese asset managers diversify their portfolios through increased investment overseas, demand for global custody and related services from institutions like BNY Mellon is on the rise.”

James Liu (劉宗仁), country executive for BNY Mellon in Taiwan, said Taiwanese pension funds have long focused on the domestic equity market in respect to their asset allocation strategies.

However, this is slowly evolving, with funds diversifying their strategies and seeking opportunities internationally, Liu said, adding that the increase in cross-border activities presented opportunities for BNY Mellon to help Taiwanese pension funds achieve their goals.

Ten-year bold yield falls

The yield on 10-year bonds dropped to a record low on concern the nation’s economic growth is stalling.

The government could report on Tuesday that GDP rose 0.5 percent in the second quarter of the year from a year earlier, following a 0.4 percent increase over the previous three months, according to the median estimate of economists in a Bloomberg News survey.

The yield on 1.25 percent notes due in March 2022 dropped one basis point to 1.13 percent, the lowest level since March 2002, according to the GRETAI Securities Market.

NT falls against greenback

The New Taiwan dollar maintained its weakness against the US dollar yesterday, falling for a third consecutive day to close at NT$30.206, NT$0.09 lower.

Turnover totaled about US$1.1 billion during the trading session.

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