Traders wary before election
Shares in Taiwan yesterday closed below 9,700 points after trading within a narrow range as investors appeared cautious ahead of today’s nine-in-one local elections, dealers said. Many investors stayed on the sidelines, resulting in the lowest turnover for a single day this year, at a time when most large-cap stocks in the electronics and non-technology sectors remained in the doldrums, they said. The TAIEX closed down 47.41 points, or 0.49 percent, at 9,667.30, after moving between 9,654.91 and 9,738.80. Turnover was NT$76.599 billion (US$2.48 billion). Foreign institutional investors bought a net NT$82 million in shares, the Taiwan Stock Exchange (TWSE) said.
Deposits boost M1B, M2
Last month’s M1B — a measure of the money in circulation — grew 5.31 percent year-on-year from 5.22 percent in September, while M2 — which includes the M1B, time deposits, foreign-currency deposits and mutual funds — saw annual growth increase to 3.39 percent from 3.34 percent, the central bank said in a statement yesterday. The rates were due to growth in passbook savings deposits, the bank said. For the first 10 months, the average annual growth rates of M1B and M2 were 5.3 percent and 3.6 percent respectively, it said.
Interest rates fall slightly
The nation’s five major state-run banks last month saw their average lending interest rates fall to 1.36 percent, down 0.014 percentage points from 1.374 percent in September. The five lenders are Bank of Taiwan (臺灣銀行), Taiwan Cooperative Bank (合庫銀行), Land Bank of Taiwan (土地銀行), Hua Nan Commercial Bank (華南銀行) and First Commercial Bank (第一銀行). The decline reflects falling interest rates applying to loans intended for companies’ working capital and capital expenditure, the central bank said in a statement on Thursday. Excluding government loans, interest rates averaged 1.418 percent, up 0.021 percentage points from 1.397 percent a month earlier, the central bank said.
TWSE to close 11 days
The TWSE is to close for 11 days during the Lunar New Year holiday next year, it announced on Tuesday. The last trading day is to be on Jan. 30, and it is to reopen on Feb. 11, the TWSE said. Based on statistics from 2000, the only years the exchange had an 11-day holiday were in 2002, 2007 and 2013. According to a calendar released by the Directorate-General of Personnel Administration, the Lunar New Year holiday period is to be from Feb. 2 to Feb. 10.
N America billings up yearly
North America-based manufacturers of semiconductor equipment last month reported worldwide billings of US$2.06 billion, trade group SEMI said in a statement on Tuesday. The three-month average of worldwide billings was 0.9 percent lower than September’s US$2.07 billion, but up 2 percent from US$2.02 billion a year earlier, SEMI said. “October billings of North American equipment suppliers reflect near-term weakening of demand for PCs, mobile phones and servers,” SEMI CEO Ajit Manocha said in a statement. “Additionally, memory manufacturers have pulled back investments in response to recent softening of memory pricing.”
Gogoro Inc (睿能創意) yesterday launched its first electric bicycle, the Gogoro Eeyo 1, in Taiwan, after unveiling the bike in New York in late May and in France on Tuesday. The company said it would also introduce the series in other European countries such as Germany and the Netherlands. The “Eeyo project” is the fourth of Gogoro’s eight projects that concentrate on smart transportation, which includes Gogoro’s electric scooter, battery swap system and electric scooter sharing service, company founder and chief executive officer Horace Luke (陸學森) told a media briefing in Taipei. “There are various types of city commuters. We will not
BAD RAP: The exchange said Tatung had seriously breached shareholders’ rights and failed to give a satisfactory explanation of its board election dispute Tatung Co (大同) shares yesterday plunged by the maximum daily limit of 10 percent to NT$18.90, the lowest in three months, after the Taiwan Stock Exchange (TWSE) on Tuesday evening changed the company’s classification to a full-delivery stock effective tomorrow. The TWSE’s move follows the company’s failure to give a clear and satisfactory explanation of why it deprived dozens of shareholders of their voting rights during a board election at the annual shareholders’ meeting on Tuesday morning. Under the exchange’s regulations, investors are not allowed to engage in margin trading of a full-delivery stock, TWSE spokeswoman Rebecca Chen (陳麗卿) told
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in