ECONOMY
Confidence falls: survey
Despite various economic indicators showing signs of improvement, confidence in the economy has fallen, according to a survey released by Cathay Financial Holding Co (國泰金控) yesterday. The survey revealed that the indices about the present economy and in the next six months both fell to the lowest levels in three months. The index on durable goods purchases over the next six months also dropped to its lowest level this year. Asked about the factors most likely to impact the performance of the stock market next year, 38.2 percent of respondents pointed to the government’s economic policies, while 36.1 percent mentioned the speed and scale of US interest rate increases. Of the potential risks to the economy next year, 47.8 percent cited the government’s economic policies, while 25.7 percent mentioned the outcome of the US presidential election. Only 20 percent of respondents identified China’s economy as a risk factor, the survey showed.
TRADE
Chinese delegation arrives
A Chinese delegation arrived yesterday on an eight-day visit to explore the possibility of procuring agricultural and specialty products from eight counties and cities. The delegation of government and business representatives is led by All China Federation of Supply and Marketing Cooperatives Taiwan office deputy director Liu Ting (劉婷). The group plans to visit New Taipei City, as well as Hsinchu, Miaoli, Hualien, Taitung, Lienchiang, Kinmen and Nantou counties, six of which have Chinese Nationalist Party (KMT) local government heads. The arrival of the delegation came after a visit to China in September by the heads of the eight cities and counties. They are scheduled to make a second trip to China next month to promote tourism and agricultural products. New Taipei Mayor Eric Chu (朱立倫) welcomed the delegation and said he hoped that it would help support the city’s agricultural and specialty products. Meanwhile, Kaohsiung Mayor Chen Chu (陳菊) of the Democratic Progressive Party said Chinese tourists are welcome to visit, but if Beijing tries to play politics with the tourism industry it would hurt the feelings of Taiwanese.
STOCK MARKET
Equities sell-off continues
Net selling by foreign institutional investors on the stock market was higher than in other Asian markets last week, data from the CTBC Asia-Pacific Multiple Income Fund showed yesterday. According to the statistics, foreign institutional investors sold a net US$1.5 billion of shares in local equities in the week ending Friday last week, topping Asian markets for the second straight week after US$1.355 billion were sold the previous week. Data from the Financial Supervisory Commission showed a net sell-off of US$1.799 billion by foreign institutional investors in the first two weeks of this month, almost as much as the US$1.916 billion recorded in the whole of last month.
STOCK MARKET
TAIEX edges higher
The TAIEX closed up 0.36 percent, or 32.32 points, to 9,041.11 on light volume of NT$62.08 billion (US$1.94 billion) yesterday, Taiwan Stock Exchange data showed. A total of 2,648 stocks closed up, while 2,376 were down and 560 unchanged, the data showed. Foreign institutional investors sold a net NT$2.18 billion of shares, while local investment trusts bought a net NT$437 million. Proprietary securities firms were net buyers of NT$265 million of shares on behalf of their clients, while they also bought a net NT$2.2 billion of shares for hedging purposes.
BUSINESS UPDATE: The iPhone assembler said operations outlook is expected to show quarter-on-quarter and year-on-year growth for the second quarter Hon Hai Precision Industry Co (鴻海精密) yesterday reported strong growth in sales last month, potentially raising expectations for iPhone sales while artificial intelligence (AI)-related business booms. The company, which assembles the majority of Apple Inc’s smartphones, reported a 19.03 percent rise in monthly sales to NT$510.9 billion (US$15.78 billion), from NT$429.22 billion in the same period last year. On a monthly basis, sales rose 14.16 percent, it said. The company in a statement said that last month’s revenue was a record-breaking April performance. Hon Hai, known also as Foxconn Technology Group (富士康科技集團), assembles most iPhones, but the company is diversifying its business to
ARTIFICIAL INTELLIGENCE: The chipmaker last month raised its capital spending by 28 percent for this year to NT$32 billion from a previous estimate of NT$25 billion Contract chipmaker Powerchip Semiconductor Manufacturing Corp (力積電子) yesterday launched a new 12-inch fab, tapping into advanced chip-on-wafer-on-substrate (CoWoS) packaging technology to support rising demand for artificial intelligence (AI) devices. Powerchip is to offer interposers, one of three parts in CoWoS packaging technology, with shipments scheduled for the second half of this year, Powerchip chairman Frank Huang (黃崇仁) told reporters on the sidelines of a fab inauguration ceremony in the Tongluo Science Park (銅鑼科學園區) in Miaoli County yesterday. “We are working with customers to supply CoWoS-related business, utilizing part of this new fab’s capacity,” Huang said, adding that Powerchip intended to bridge
Qualcomm Inc, the world’s biggest seller of smartphone processors, gave an upbeat forecast for sales and profit in the current period, suggesting demand for handsets is increasing after a two-year slump. Revenue in the three months ended in June will be US$8.8 billion to US$9.6 billion, the company said in a statement Wednesday. Excluding certain items, earnings will be US$2.15 to US$2.35 a share. Analysts had projected sales of US$9.08 billion and earnings of US$2.16 a share. The outlook signals that the smartphone market has begun to bounce back, tracking with Qualcomm’s forecast that demand would gradually recover this year. The San
Clambering hand-over-hand, sweat dripping into his eyes, a durian laborer expertly slices a cumbersome fruit from a tree before tossing it down to land with a soft thump in his colleague’s waiting arms about 15m below. Among Thailand’s most famous and lucrative exports, the pungent “king of fruits” is as distinctive in its smell as its spiky green-brown carapace, and has been farmed in the kingdom for hundreds of years. However, a vicious heat wave engulfing Southeast Asia has resulted in smaller yields and spiraling costs, with growers and sellers increasingly panicked as global warming damages the industry. “This year is a crisis,”