TSMC bucks downward trend
Lingering concerns over the global economy sent shares on the Taiwan Stock Exchange into a tailspin yesterday as investors rushed to unload their holdings to curtail losses, dealers said.
While select large cap stocks, such as Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) ,appeared resilient throughout the session, selling was seen across the board amid fears that weakening global demand will squeeze corporate earnings, they said.
Shares in TSMC, which posted a quarterly record high net profit in the third quarter, ended up 2.95 percent at NT$87.30.
Shares in AU Optronics Corp (友達), however, took a dive yesterday after the flat-panel maker reported massive losses for the third quarter, causing stock to drop 7 percent, the largest daily decline, to NT$10.35.
The benchmark TAIEX closed down 128.02 points, or 1.76 percent, at 7,134.06. Turnover was NT$89.68 billion (US$3.06 billion) during the session.
Central bank to auction bonds
The nation’s central bank is expected to sell NT$30 billion (US$1 billion) of 20-year bonds at an average yield of 1.58 percent on Monday, according to the median estimate of seven fixed-income traders surveyed.
The rates forecast ranged from 1.56 percent to 1.59 percent. Similar-maturity notes yielded 1.597 percent in the secondary market at yesterday’s close in Taipei, according to GRETAI Securities Market.
Investors will bid on the yield at auction on Monday. The issuer will set the coupon by taking the highest winning offer.
Solar power plant inaugurated
A privately built and operated solar power plant was inaugurated in Greater Tainan’s Syuejia District (學甲) yesterday, with a total installed capacity of 1.2 million watts.
The facility is the largest single solar power plant in Taiwan operated by a private company, according to Jerry Chen (陳繼仁), chairman of Giga Solar Materials Corp (碩禾).
Since the end of June when the power station began grid-connected power generation, the Hsinchu-based Giga Solar plant has produced 600,000kWh, which equals a monthly power output of 160,000kWh, enough for the needs of 400 families, he said.
Accumulated installed capacity of solar plants in Taiwan stands at 200 million watts, less than 0.5 percent of the total power generated in the country, he said.
Swedish firms invest in Taiwan
Four Swedish companies will invest more than US$200 million in Taiwan over the next three years, the Ministry of Economic Affairs said yesterday.
The companies are industrial tool and equipment maker Atlas Copco, mobile telecommunications equipment maker Ericsson, SCA Hygiene Products and Siemens Industrial Turbomachinery, the ministry said in a statement.
The results were achieved by a Northern Europe investment promotion mission headed by Vice Minister of Economic Affairs Bill Cho (卓士昭), which is visiting Finland and Sweden between Oct. 20 and Oct. 28 as part of the government’s ongoing efforts to boost investment from overseas.
NT dollar under more pressure
The New Taiwan dollar lost ground against the US dollar yesterday, declining NT$0.02 to close at NT$29.300 after the local bourse took a beating to place downward pressure on the local currency, dealers said.
The Taiwan dollar also weakened against the greenback in line with its counterparts in the region, which came under pressure amid lingering concerns over global demand, they said.
Turnover totaled about US$565 million during the session.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to
The US stock market has been on a tear, yet the country’s economy is in the dumps. So why do so many people believe — undoubtedly incorrectly — that the stock market has decoupled from reality? The economy many people experience, while bleak, is local, personal and, for the most part, either not publicly traded or plays only a small part in the stock market’s moves. To explain why these personal experiences have so little effect on equity markets, we must look more closely at the market role of the weakest industry sectors. The surprising conclusion: The most visible and economically vulnerable