Fri, Dec 28, 2018 - Page 11 News List

Taiwan Business Quick Take

Staff writers, with CNA

INSURANCE

Forex losses hit record high

Local life insurers reported NT$200.8 billion (US$6.52 billion) in foreign exchange losses for the first 11 months of this year, a record for the period, due to higher hedging costs amid an increasing interest rate spread between Taiwan and the US, Financial Supervisory Commission statistics released yesterday showed. Property insurers reported foreign exchange losses of NT$1.2 billion for the same period, the data showed. Local life insurers booked foreign exchange gains of NT$318.9 billion as of the end of last month, as the New Taiwan dollar depreciated 3.36 percent against the US dollar in the first 11 months, the data showed. However, those gains were offset by heavy hedging losses totaling NT$494.1 billion as of Nov. 30, the data showed.

CHIPMAKERS

Macronix to boost spending

Macronix Internatonal Co (旺宏電子), the world’s biggest NOR flash memorychip maker, on Monday said that its board of directors has approved additional capital spending of NT$865 million for regular operations next year. In October, the board gave the green light to capital expenditure of NT$14.2 billion to boost high-end chip capacity to meet demand from clients. The budget is to be spent from the current quarter. The board also approved the renewal of an agreement with IBM Corp to develop a new phase-change memory chip, the company said.

EQUITIES

TAIEX follows Wall Street up

The TAIEX yesterday rose 1.72 percent on a technical rebound as buying was sparked by a strong showing on Wall Street overnight — with the Dow Jones Industrial Average gaining 4.98 percent — in its biggest-ever single-day point gain. Turnover totaled NT$81.32 billion. Foreign institutional investors bought a net NT$7.63 billion of shares on the main board. Foreign institutional investors had apparently not returned from the Christmas holiday, a market analyst said. A rebound in technology companies in the US overnight lifted the domestic bellwether electronics sector, with shaers of contract chipmaker Taiwan Semiconductor Manufacturing Co (台積電), the most heavily weighted stock on the local market, rising 3.46 percent to close at NT$224. Also in the technology sector, shares of Largan Precision Co (大立光), a smartphone camera lens supplier to Apple Inc, added 0.32 percent to close at NT$3,135 and iPhone assembler Hon Hai Precision Industry Co (鴻海精密) shares edged up 0.85 percent to end at NT$70.80.

RETAIL

Tuntex Mart to close down

Tuntex Mart, the largest hypermarket in Keelung, is to cease operations on Feb. 18 amid escalating competition from online vendors, the Keelung City Government said on Wednesday. A total of 136 people would be laid off due to the closure, Keelung Department of Social Affairs Director Wu Ting-feng (吳挺鋒) told reporters. It had been rumored that Tuntex Mart, which opened in 1994, would close due to rising operating costs and a decline in foot traffic. The layoffs are to occur in three phases, with the first to be completed by Feb. 4, the second by Feb. 19 and the third by Feb. 28, Wu said. Tuntex Mart informed the department of the layoff plan and talks on the issue have proceeded smoothly, Wu said, adding that the city government would pay close attention to the discussions to protect the rights of the affected workers. Tuntex Mart would have to ensure that affected workers receive wages, overtime pay and compensation for the layoffs, he said.

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