Eurozone news boosts TAIEX
The TAIEX closed above the 7,100-point mark yesterday as sentiment over the debt situation in the eurozone improved to some extent after the European Central Bank said it would do whatever it takes to preserve the euro, dealers said.
The high-tech sector staged a strong rebound throughout the session, led by market heavyweights such as Hon Hai Precision Industry Co (鴻海) and Taiwan Semiconductor Manufacturing Co (TSMC, 台積電).
The improved sentiment toward the European financial crisis prompted investors to return to the trading floor boosting the daily turnover to above NT$70 billion (US$2.32 billion) at the end of the session, dealers added.
The weighted index closed up 153.80 points or 2.21 percent at the day’s high of 7,124.49, off an early low of 7,045.31. Turnover totaled NT$75.50 billion during the session.
HTC explains office closure
HTC Corp (宏達電), one of the country’s leading smartphone makers, said yesterday its decision to close its South Korea office is aimed at streamlining its operations and improving efficiency after several years of aggressive growth.
“This is a hard decision that has a direct impact on people who have contributed to the growth HTC has experienced the past several years,” the Taoyuan-based phone manufacturer said in a statement.
A spokeswoman for the company declined to disclose exactly how many employees were affected by the closure, saying only that it was a small number.
Last month, HTC closed its office in Brazil amid reports that its market share there was shrinking due to increasing competition from rivals such as Samsung Electronics Co, LG Electronics Inc and Nokia Oyj.
TSMC mum on acquisition
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) declined to comment yesterday on reports that it is in talks to acquire a chip plant from Japan-based Fujitsu Semiconductor Ltd.
Japanese business daily Nikkei Shimbun reported that Fujitsu is trying to sell its high-end chip plant in Mie Prefecture to TSMC. The Fujitsu plant makes image-processing chips for cameras and number-crunching chips for supercomputers.
According to the Nikkei, Fujitsu plans to sell its Mie plant as part of its strategy to separate manufacturing from design to pursue a “fabless” model in which it only designs chips and outsources their production.
Constituencies added to index
The Taiwan Stock Exchange said yesterday its Taiwan Employment Creation 99 Index has added five new constituencies after an annual review held earlier this month.
The five new constituencies are Taishin Financial Holding Co (台新金控), restaurant chain operator Wowprime Corp (王品), metal casing supplier Catcher Technology Corp (可成), Far Eastern International Bank (遠東國際商銀) and cellphone camera lens maker Largan Precision Co (大立光).
After the annual index review, Cathay Financial Holding Co (國泰金控) retained its title as the largest employer listed in the index while Taiwan Semiconductor Manufacturing Co (台積電) came in second, ahead of third-placed financial holding firm Fubon Financial Holding Co (富邦金控).
NT dollar holds ground
The New Taiwan dollar maintained its strength against the US dollar yesterday, adding NT$0.05 to close at NT$30.10. Turnover totaled US$762 million during the trading session.