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.