TAIEX down on sales decline
The TAIEX declined yesterday amid lingering concerns over global demand, after select technology companies reported disappointing sales for last month, dealers said.
Lensmaker Largan Precision Co (大立光), which saw a 17.12 percent sequential drop in sales last month, led the decline in large-cap high-tech stocks, they said. Its shares fell 3.32 percent to NT$582.00 after it announced that consolidated sales hit a 23-month low of NT$978 million last month, which represented a 28.39 percent decline year-on-year.
However, some China concept stocks bucked the broader market’s downtrend, buoyed by news of the People’s Bank of China cutting its key interest rates in a bid to boost the economy, dealers said.
The weighted index closed down 19.19 points, or 0.26 percent, at 7,368.59, after moving between 7,328.03 and 7,406.62. Turnover was NT$72.65 billion (US$2.43 billion).
Minister lauds investment
Council of Economic Planning and Development Minister Yiin Chii-ming (尹啟銘) said yesterday that the government has been helping prop up the biotechnology industry for years.
Yiin’s remarks came after AIDS research pioneer David Ho (何大一) said on Thursday that the government’s questions about Yu Chang Biologics Co (宇昌生技) a few months ago was “killing the biotechnology industry” in Taiwan.
“Yu Chang is only a single case,” Yiin, who is also the convener of the National Development Fund, told a media briefing. “It is not fair to expand the case to the government’s efforts on the biotechnology industry.”
As of the end of last year, the fund had invested in 12 biotechnology firms and 21 biotechnology venture capital companies, while co-investing in 18 related firms through a Ministry of Economic Affairs project that invests in small and medium-sized enterprises.
The total investment had reached NT$10.77 billion, the fund said in a press release.
Green Energy sales declines
Green Energy Technology Inc (綠能科技), the nation’s largest solar wafer maker, yesterday posted its fourth consecutive monthly revenue drop, attributing it to an increase in lower-priced contracting business.
Revenue contracted 4 percent to NT$943 million last month from NT$985 million in May, the company said. That represented an annual decline of 35 percent from NT$1.46 billion.
However, second-quarter revenue expanded 5.8 percent to NT$2.92 billion from NT$2.76 billion in the first quarter, it said.
Green Energy also reported NT$519 million in revenue from its Chinese subsidiary, Ultra Energy (Weifang) Technology Co (宇駿濰坊), last month.
Former Alibaba boss detained
Top Chinese e-commerce operator Alibaba (阿里巴巴) said yesterday that it would not tolerate corruption, after a senior manager was detained on suspicion of taking bribes in the latest graft scandal to hit the company.
Yan Limin, former general manager of Alibaba’s online group buying arm, Juhuasuan, was under police investigation over bribery allegations, the company said in a statement.
Yan was removed from his post in March due to a “major breach of duty in the management of the Juhuasuan team” and he had been investigated by Alibaba internally over his personal involvement in graft before police detained him, it said.
NT dollar down slightly
The New Taiwan dollar lost ground against the US dollar yesterday, shedding NT$0.032 to close at NT$29.922 on turnover of US$737 million.