TAIEX gains on stimulus bets
The TAIEX overcame stiff technical resistance at around 7,200 points yesterday as the market again anticipated that the world’s major central banks will come up with stimulus measures to boost the fragile global economy, dealers said.
The hope for stimulus moves, in particular the injection of more funds into the market, prompted many investors to buy shares and ignore the government’s lowering of its forecast for Taiwan’s economic growth this year to 2.08 percent, from an early estimate of 3.03 percent, they said.
Buying initially focused on large-cap and electronics stocks due to their relatively low valuation initially and spread to the old economy sector to push higher the index above the 7,200 point mark at the end of the session, they said.
The weighted index closed up 111.61 points, or 1.56 percent, at the day’s high of 7,270.49, off an early low of 7,140.53, on turnover of NT$80.17 billion (US$2.67 billion).
At the end of the session, the plastics and chemical sector scored the highest gains among the eight major sectors of the market, finishing up 1.8 percent.
E United eyes Indonesia
E United Group (義聯集團) plans to mine nickel and build a steel plant in Indonesia in a project that may cost up to NT$10 billion, the company and reports said yesterday.
E United, a leading steel conglomerate headquartered in Greater Kaohsiung, has signed a letter of intent with an Indonesian company to jointly mine nickel, the Chinese-language Economic Daily News said.
The newspaper did not identify the Indonesian company. Nickel is a key material used in the production of stainless steel.
“Indeed we do have such a project,” an official with the conglomerate said, without providing details of the joint investment plans.
The report said the plans would help E United ensure sufficient supplies of raw materials for plants it has built in China.
Panasonic back in black
Panasonic Corp said yesterday it returned to the black in the April-June quarter, logging a net profit of ￥12.8 billion (US$163 million) mainly on cost-cutting.
The Japanese consumer electronics giant had a net loss of ￥30.4 billion in the same quarter a year earlier.
The Osaka-based maker of Viera TVs and Lumix digital cameras said it managed to earn money despite a 6 percent decline in fiscal first quarter sales to ￥1.815 trillion amid weak demand in its Japanese home market.
Panasonic kept its profit forecast for the full fiscal year through March next year unchanged at ￥50 billion.
Audi sticking to target
Audi, the top-of-the-range carmaker owned by German auto giant Volkswagen, said operating profit accelerated powerfully in the first half of the year and stuck to its full-year target.
Operating profit rose by 13.2 percent to 2.9 billion euros (US$3.6 billion) from a year earlier, the firm said, registering sales of 25 billion euros, a gain of 16.2 percent.
Audi said it delivered 733,237 cars in the first half of the year, 12.3 percent more than in the first six months of last year.
The company said it aimed to deliver more than 1.4 million cars for the first time in the full year.
NT dollar gains ground
The New Taiwan dollar gained ground against the US dollar yesterday, edging up NT$0.07 to close at NT$30.010 as traders moved their funds out of the US dollar to the currencies in the region, including the NT dollar, throughout the trading session, dealers said. Turnover totaled US$779 million during the trading session.