The market capitalization of the Taiwan Stock Exchange stood at about NT$24.62 trillion (US$775 billion) as of yesterday, down 2.58 percent, or NT$651.39 billion, from a week earlier, as the TAIEX fell 223.05 points, or 2.57 percent, in the whole of last week, according to statistics released by the stock exchange. The TAIEX closed at 8,442.29 points yesterday. As the main bourse remained in consolidation mode, the benchmark index is forecast to move between 8,300 and 8,500 points in the near term, dealers said.
Bad loans fall
Taiwanese banks’ average non-performing loan ratio fell to 0.25 percent at the end of June from 0.26 percent in the previous month, reflecting healthy asset quality for the 39 domestic lenders, the Financial Supervisory Commission said on Thursday. Total outstanding loans at domestic banks stood at NT$24.96 trillion in June, a decrease of NT$47 billion from May, while bad loans totaled NT$63 billion, a decrease of NT$19 million from the previous month’s NT$64.9 billion, the commission said. The coverage ratio — loans covered by banks’ provisions and a gauge indicating the sufficiency of bad loan reserves — rose 10.59 percentage points to 501.14 percent in June, the commission said.
Everlight income plunges
LED supplier Everlight Electronics Co’s (億光) net income last quarter plunged 37.19 percent annually and 44.91 quarterly to NT$309 million, or NT$0.7 per share, below the market’s consensus estimate of NT$389 million. The company yesterday posted revenue of NT$2.25 billion for last month, down 13.75 percent from last year’s NT$2.61 billion and 7.02 percent from the previous month’s NT$2.42 billion. Cumulative revenue totaled NT$16.55 billion in the first seven months of the year, up 0.13 percent from NT$16.53 a year earlier. Everlight’s revenue this quarter might increase 4 percent from last quarter’s NT$7.05 billion, but the firm’s growth momentum will remain below historical seasonal patterns, Yuanta Securities Investment Consulting Co (元大投顧) said in a note yesterday.
Innolux revenue takes hit
Innolux Corp (群創), the nation’s biggest LCD panelmaker, yesterday said revenue dropped slightly by 1.7 percent to NT$29.66 billion last month, compared with NT$30.16 billion in June, after shipments of PC and TV panels shrank 3.7 percent sequentially. Innolux expects shipments of PC and TV panels to drop by a mid-single-digit percentage sequentially this quarter, while prices would be flat on better TV demand. Shipments of small and medium-sized panels rose 17.5 percent last month from a month earlier, the company said. In the seven-month period ended last month, revenue declined 5.69 percent to NT$223.57 billion from NT$237.05 billion in the same period last year.
Merida revenue picks up
Merida Industry Co (美利達), the nation’s No. 2 bicycle maker, yesterday reported last month’s revenue grew 10.68 percent from a year earlier and 27.42 percent from June to NT$3.26 billion as demand recovery in China picked up gradually. The company’s cumulative revenue for the first seven months totaled NT$16.498 billion, up 7.23 percent from the same period last year, Merida said. The company is expecting revenue for this year to grow by between 5 percent and 10 percent from last year’s NT$27.2 billion.
Softbank Group Corp plans to keep a stake in the chip designer Arm Ltd, even if it sells a partial interest to Nvidia Corp, the Nikkei reported. The companies are negotiating terms, the newspaper reported, citing sources. Softbank might take a stake in Nvidia after it buys Arm, the report said. Nvidia and Arm might also merge through a share swap, and Softbank would become a major shareholder in the combined company, it said. The two parties aim to reach a deal in the next few weeks, the sources said, asking not to be identified because the information is private. Nvidia is the
MOVING FROM CHINA? The article did not name the company, but Foxconn, Wistron and Pegatron were among firms chosen for a production-linked incentive plan in India An Apple Inc vendor is looking at shifting six production lines to India from China, which could result in US$5 billion of iPhone exports from the South Asian nation, the Times of India reported, citing people familiar with the matter who it did not identify. The establishment of the facility would create about 55,000 jobs over about a year, the newspaper reported, not naming the Apple vendor. It would also cater to the domestic market and expand operations to include tablets and laptops, the newspaper reported. Samsung Electronics Co and Apple’s assembly partners are among 22 companies that have pledged 110 billion
Gold surged to a fresh record on Friday, fueled by US dollar weakness and low interest rates, while silver headed for its best month since 1979. Spot bullion is up more than 10 percent this month, as US real yields lingered near record lows. While the ferocity of rallies in gold and silver cooled in the middle of the week, most market watchers predict there might be more gains ahead. Both metals have added about 30 percent this year, with gold and silver exchange-traded funds boosting holdings to a record, as concern about the fallout from the COVID-19 pandemic fuels demand for
‘ONE-STOCK SHOW’: Turnover hit an all-time high as TSMC continued to determine the local market’s direction and surpassed Visa in market capitalization The TAIEX early yesterday hit an all-time intraday high on the back of soaring Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) shares, before tumbling back to the previous day’s close as the contract chipmaker could not single-handedly prop up the index. The TAIEX rose more than 400 points in the first 20 minutes of trading to hit a record 13,031.7 points, but later pared its gains to close down 0.01 percent at 12,586.73. Turnover was NT$343.252 billion (US$11.63 billion), the highest in the Taiwan Stock Exchange’s history. TSMC continued to dictate the market’s direction, as its early surge by the daily