TAIEX edges lower
The TAIEX edged lower yesterday, as investors were kept on the sidelines by political uncertainties ahead of today’s US presidential election and the Chinese Communist Party’s 18th Party Congress, dealers said.
The weighted index ranged between a high of 7,216.30 and a low of 7,161.70 before finishing down 25.11 points, or 0.35 percent, at 7,185.36.
A total of 1,269 stocks closed up, 2,720 finished down and 403 remained unchanged on the stock exchange.
Decrease in PE ratio
The average price-earnings ratio (PE ratio) of companies listed on the main board at the end of last month was 22.5, down from 25.21 at the end of September, the Taiwan Stock Exchange (TWSE) said yesterday.
The TWSE said the market’s average PE ratio at the end of last month was 24.72 when financial stocks were excluded and 23.37 when electronics shares were excluded.
When both the financial and electronics sectors were excluded, the average PE ratio was 30.53.
The PE ratio is a company’s share price divided by its earnings per share. The higher the ratio, the more expensive the stock.
Companies in the plastics sector had the highest price to earnings multiple of all sectors on the main board at the end of last month at 51.91, the exchange said.
Enterprises in the construction and building materials sector had the lowest at 9.38, the exchange said.
Foxconn shares soar
Shares in Foxconn International Holdings Ltd (FIH, 富士康控股) climbed by a record in Hong Kong trading after HSBC Holdings PLC and Citigroup Inc raised ratings, saying it may return to profit by supplying Apple Inc and Amazon.com Inc.
Foxconn International soared 32 percent to HK$3.60, the most in at least seven years.
A transfer of some orders for iPhones from Hon Hai Precision Industry Co (鴻海), the majority owner of FIH, and a new smartphone for Amazon will help FIH boost output and reverse a first-half loss that drove down shares, the two brokerages wrote in reports.
AirAsia to operate new route
AirAsia, Asia’s largest low-cost airline, said yesterday it intends to launch a new direct route between Taiwan and the Philippines in December.
The aim of the new route is to tap the large number of Filipino workers in Taiwan.
The maiden flight is to depart from Clark International Airport in central Luzon for Taiwan Taoyuan International Airport on Dec. 16, with a one-way promotional fare of NT$650 during the promotion period between Nov. 5 and Nov. 11, according to an AirAsia statement.
The one-way flight will depart from Taoyuan to Clark, which is about 70km from the capital of the Philippines, Manila.
Tickets will cost at least NT$1,198 during the promotion, according to the Air-Asia Web site.
Promotional fare tickets must be used between Dec. 16 and Sept. 30, 2013, the Malaysia-based company said.
The carrier intends to offer the new Airbus A320 service every Monday, Wednesday, Friday and Sunday.
New Taiwan dollar declines
The New Taiwan dollar lost ground against the US dollar yesterday, declining NT$0.005 to close at NT$29.305.
Turnover totaled about US$467 million during the trading session.