Thu, Aug 09, 2012 - Page 14 News List

[ BUSINESS BRIEFS ]

Staff writer, with Agencies

High-tech stocks boost TAIEX

The TAIEX was lifted by rotational buying yesterday as select high-tech stocks staged a rebound because of an improvement in profitability, dealers said.

However, the gains were limited as the index encountered stiff technical resistance at around 7,300 points, with investors still wary of sluggish global economic fundamentals, they said.

The weighted index closed up 24.34 points, or 0.33 percent, at 7,319.80, on turnover of NT$93.59 billion (US$3.12 billion).

The turnover was the highest since June 15 and exceeded NT$90 billion for only the third time since June 1.

Hon Hai raises NT$8bn

Hon Hai Precision Industry Co (鴻海), the world’s largest contract electronics maker, raised NT$8 billion via a bond sale, the underwriter of the deal said in a statement yesterday.

The company sold the three-year bonds at a yield of 1.18 percent, its lowest yield for a three-year bond since 2008, when it sold NT$5.12 billion of such debt at a yield of 2.50 percent.

In April, Hon Hai sold NT$6 billion of five-year bonds at a yield of 1.43 percent and in February it issued NT$9 billion of five-year bonds at 1.34 percent.

Cathay Financial sells bonds

Cathay Financial Holding Co (國泰金控), the nation’s largest financial services provider, yesterday said it raised US$254 million from the sale of two-year convertible bonds.

The company said in a statement that the bonds give investors the right to convert the paper into Cathay Financial shares at NT$38.10 each by August 2014.

Higher yuan ceiling urged

Bank SinoPac (永豐銀行) chairman Paul Chiu (邱正雄) yesterday called on the government to raise the ceiling for local banks’ exposure to the Chinese yuan to benefit from growing economic exchanges across the Taiwan Strait.

Local rules currently impose a cap on each Taiwanese bank’s aggregate amount of yuan-denominated loans and investments, at 100 percent of the bank’s net worth.

Chiu said the restrictions have made Taiwan lag behind Hong Kong in financial competition and the government should therefore relax the rules.

The restrictions are particularly unfavorable to smaller sized banks, Chiu said. In addition, the local banking sector is unlikely to benefit greatly from a relatively wide interest spread in the yuan lending business because of the current exposure ceiling, he said.

Nanya Technology holds rank

Taiwan-based Nanya Technology Corp (南亞科技) retained its ranking as the world’s fifth-largest DRAM chip maker in terms of sales during the second quarter of this year, DRAMexchange, a research division of the Taiwan-based market information advisory TrendForce (集邦科技), said in a report on Tuesday.

Nanya, which posted US$341 million in sales for the April to June period, took a 4.9 percent share of the global DRAM market in the quarter, compared with the 4.6 percent it secured in the first quarter, DRAMexchange said.

Samsung Electronics Co remained the world’s largest DRAM maker in the second quarter, gaining a 39.5 percent share, while SK Hynix Inc took a 24.4 percent share, ranking as the world’s second-largest memorychip maker. Elpida Memory Inc came in third with a 12.9 percent market share, followed by Micron Technology Inc with 12.5 percent, the report said.

NT dollar slips

The New Taiwan dollar lost ground against the US dollar yesterday, declining NT$0.032 to close at NT$29.987.

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