STOCK MARKET
Securities firms see losses
Local securities firms reported a combined net loss of NT$1.81 billion (US$58.6 million) last month, down from net income of NT$360.52 million in September as the TAIEX fell about 1,200 points, or 10.94 percent, month-on-month in the wake of a drop on Wall Street, the Taiwan Stock Exchange said yesterday. From January to last month, securities firms reported a cumulative net income of NT$25.7 billion, down 20.57 percent from NT$32.36 billion in the same period last year, it said. The 34 integrated securities firms — which are allowed to engage in brokering, proprietary trading and underwriting — reported a combined net loss of NT$1.99 billion last month, compared with NT$234.73 million in profit in September, while their cumulative net income fell 21.56 percent annually to NT$22.41 billion in the first 10 months, the exchange said.
ELECTRONICS
Sinbon invests in Nextronics
Sinbon Electronics Co (信邦電子), which produces cables, connectors and modems, yesterday said that its board of directors has agreed to acquire 2.95 million common shares of Nextronics Engineering Corp (正淩精密) via a private placement, which it said could create more business opportunities and revenue sources. It offered NT$24.1 per share for Nextronics, which is based in New Taipei City’s Sijhih District (汐止) and makes connectors, valuing the deal at NT$71.095 million, Sinbon said in a filing with the Taiwan Stock Exchange. The firm said that it plans to pay the whole amount by Friday. Shares of Sinbon yesterday closed up 0.76 percent at NT$79.6 before the announcement of the private placement deal, while Nextronics shares were trading at NT$28.75.
ELECTRONICS
Excelliance eyes demand
IC designer Excelliance MOS Co (杰力) yesterday said that it would continue to benefit from robust demand for metal-oxide-semiconductor field-effect transistors (MOSFET) next year, after sales in the first three quarters increased 49 percent annually to NT$1.07 billion. Rising prices and expanded capacity would also boost next year’s sales, it said. From January to September, net income doubled to NT$185 million, with earnings per share of NT$5.24. MOSFETs are used for amplifying or switching electronic signals. Rising demand for device driver components used in smart homes, cordless vacuum cleaners and electrical vehicles means that the supply-demand dynamic for MOSFETs would remain unchanged next year, the company said.
STOCK MARKET
New listings disappoint
Hong Kong’s hottest initial public offerings (IPO) have produced the worst returns for investors this year. Ping An Healthcare and Technology Co (平安健康互聯網), in which retail investors placed orders for 654 times the shares initially available, has tumbled 37 percent since it started trading in May. Biotechnology firm Ascletis Pharma Inc (歌禮製藥), whose retail book was covered 10 times, is down 44 percent from its IPO price, and food delivery giant Meituan Dianping (美團點評) has dropped 24 percent. However, while Redsun Properties Group Ltd (弘陽地產), Zhenro Properties Group Ltd (正榮地產) and DaFa Properties Group Ltd (大發地產) received initial orders filling on average just 0.8 times their retail books, they have climbed an average 18 percent from their IPO prices, putting them among the top five performers for deals of more than US$100 million.
China has claimed a breakthrough in developing homegrown chipmaking equipment, an important step in overcoming US sanctions designed to thwart Beijing’s semiconductor goals. State-linked organizations are advised to use a new laser-based immersion lithography machine with a resolution of 65 nanometers or better, the Chinese Ministry of Industry and Information Technology (MIIT) said in an announcement this month. Although the note does not specify the supplier, the spec marks a significant step up from the previous most advanced indigenous equipment — developed by Shanghai Micro Electronics Equipment Group Co (SMEE, 上海微電子) — which stood at about 90 nanometers. MIIT’s claimed advances last
ISSUES: Gogoro has been struggling with ballooning losses and was recently embroiled in alleged subsidy fraud, using Chinese-made components instead of locally made parts Gogoro Inc (睿能創意), the nation’s biggest electric scooter maker, yesterday said that its chairman and CEO Horace Luke (陸學森) has resigned amid chronic losses and probes into the company’s alleged involvement in subsidy fraud. The board of directors nominated Reuntex Group (潤泰集團) general counsel Tamon Tseng (曾夢達) as the company’s new chairman, Gogoro said in a statement. Ruentex is Gogoro’s biggest stakeholder. Gogoro Taiwan general manager Henry Chiang (姜家煒) is to serve as acting CEO during the interim period, the statement said. Luke’s departure came as a bombshell yesterday. As a company founder, he has played a key role in pushing for the
EUROPE ON HOLD: Among a flurry of announcements, Intel said it would postpone new factories in Germany and Poland, but remains committed to its US expansion Intel Corp chief executive officer Pat Gelsinger has landed Amazon.com Inc’s Amazon Web Services (AWS) as a customer for the company’s manufacturing business, potentially bringing work to new plants under construction in the US and boosting his efforts to turn around the embattled chipmaker. Intel and AWS are to coinvest in a custom semiconductor for artificial intelligence computing — what is known as a fabric chip — in a “multiyear, multibillion-dollar framework,” Intel said in a statement on Monday. The work would rely on Intel’s 18A process, an advanced chipmaking technology. Intel shares rose more than 8 percent in late trading after the
GLOBAL ECONOMY: Policymakers have a choice of a small 25 basis-point cut or a bold cut of 50 basis points, which would help the labor market, but might reignite inflation The US Federal Reserve is gearing up to announce its first interest rate cut in more than four years on Wednesday, with policymakers expected to debate how big a move to make less than two months before the US presidential election. Senior officials at the US central bank including Fed Chairman Jerome Powell have in recent weeks indicated that a rate cut is coming this month, as inflation eases toward the bank’s long-term target of two percent, and the labor market continues to cool. The Fed, which has a dual mandate from the US Congress to act independently to ensure