Sat, Dec 01, 2012 - Page 14 News List

Far Eastern Group shares boosted after court ruling

JUDICIOUS:Although the recent verdict favors Far Eastern Department Stores, an expert remained cautious about the retailer’s fundamentals due to weak domestic consumption

By Kevin Chen  /  Staff reporter

Textile manufacturer Far Eastern New Century Corp (遠東新世紀), which is a flagship company of the diversified business conglomerate, advanced 2.67 percent to NT$34.55 yesterday. Shares have fallen 1.71 percent so far this year.

Fubon Securities Investment Services Co (富邦投顧) analyst Kerry Wu (吳致勤) said the government’s tighter housing restrictions and a purified terephthalic acid (PTA) supply glut will continue to undermine Far Eastern New Century’s operations next year.

In addition, non-core gains from Sogo only make up a 2 percent of the textile firm’s net asset value, representing a meager contribution to consolidated sales, he added.

Additional reporting by Helen Ku

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