TAIEX falls on Pegatron news
The TAIEX fell back yesterday from a session earlier amid renewed concerns over corporate earnings after Pegatron Corp (和碩), one of Taiwan’s leading contract notebook computer makers, reported disappointing second quarter results, dealers said.
However, select market heavyweights, in particular smartphone vendor HTC Corp (宏達電), staged a technical rebound to prevent the index from falling further as investors took advantage of their relatively low valuations after a recent slump, they said.
Pegatron closed down 7 percent, the maximum daily decline, at NT$37.00, while HTC gained 4.79 percent to close at NT$262.50.
The weighted index closed down 27.64 points, or 0.37 percent, at 7,477.53, after moving between 7,454.85 and 7,494.36, on turnover of NT$78.29 billion (US$2.61 billion).
Foxconn increases salaries
Foxconn Technology Group (富士康科技集團), which pledged to improve pay and conditions on its assembly lines, raised salaries by more than 16 percent at a plant making Apple Inc iPhones and halved the probation period for new workers.
Monthly salaries for entry-level employees at the factory in Zhengzhou were raised starting on Aug. 1 to 1,800 yuan (US$283) from 1,550 yuan, the Taipei-based company said in a statement yesterday. Probation, after which workers get a higher base salary, was cut to three months from six months, it said.
Base-salary increases will range from 250 yuan per month to 350 yuan per month, depending on the worker’s tenure and position within the company, and don’t take overtime into account, Foxconn said.
Another 200 yuan per month will be paid to production workers during the peak month of August to November, it said.
Taipei competitiveness rises
Taipei ranked 36th among 45 global cities evaluated in an international financial center competitiveness index, according to a report jointly released on Thursday by China’s Xinhua News Agency and S&P Dow Jones Indices. Taipei was ranked 40th last year and 41st in 2010. Among the 11 Asian cities evaluated, Taipei placed 10th, followed by Japan’s Osaka.
The index evaluated cities in five indicators — industrial support, service, general environment, financial market, and growth and development.
Taipei received lower rankings in the last two indicators compared with last year. In the growth and development indicator, Taipei dropped from 20th place last year to 27th this year.
The top 10 cities on the index, which debuted in 2010, are New York, London, Tokyo, Hong Kong, Singapore, Shanghai, Frankfurt, Paris, Zurich and Chicago.
New chairman for Inotera
Memorychip maker Inotera Memories Inc (華亞科技) said yesterday that its president Charles Kau (高啟全) would replace Jih Lien (連日昌) as new chairman, effective immediately.
Lien will continue to sit on the company’s board after resigning from the chairmanship, Inotera said in a statement. Inoteral also said executive vice president Scott Meikle would serve as president, effective Sept. 1, to take charge of the company’s daily operation.
NT dollar falls
The New Taiwan dollar lost ground against the US dollar yesterday, declining NT$0.042 to close at NT$30.002 after the central bank intervened late in the session to reverse early losses suffered by the greenback, dealers said.
The closing rate showed the central bank’s determination to keep the US dollar above the NT$30.00 mark in a bid to boost Taiwan’s exports, they said.