Wed, Mar 26, 2014 - Page 14 News List

Taiwan Business Quick Take

Staff writer, with Bloomberg

TELECOMS

Chunghwa approves payout

Chunghwa Telecom Co (中華電信), the nation’s largest telecom, yesterday said its board had approved a proposal to pay a cash dividend of NT$4.53 per share. That represents about a 4.83 percent dividend yield, compared with the stock’s closing price of NT$93.7 yesterday. Separately, smaller rival Vibo Telecom Inc (威寶電信) yesterday said its shareholders had approved a plan to cut the firm’s share capital by 80.46 percent, or NT$25.12 billion (US$692 million), to NT$6.1 billion. The capital reduction follows the company’s loss widening to NT$12.35 billion last year from NT$4.19 billion in 2012, according to a company filing to the Taiwan Stock Exchange. Vibo is a subsidiary of 4G license holder Taiwan Star Cellular Corp (台灣之星).

ECONOMY

Rate speculation hits bonds

Prices of Taiwanese five-year government bonds fell, pushing the yield up by the most since December last year, on speculation the central bank may follow the US Federal Reserve by signaling policy tightening at its quarterly meeting this week. The yield has risen five basis points in four days after US Federal Reserve Chair Janet Yellen said on Wednesday last week that US interest rates could be increased about six months after the Fed ends its bond-buying program later this year. Taiwan’s central bank will hold its policy rate at 1.875 percent for an 11th straight meeting tomorrow, according to 21 economists surveyed by Bloomberg.

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