TAIEX rallies following slump
The TAIEX recouped part of its earlier losses yesterday as bargain hunters turned active, taking advantage of low valuations after a recent slump, dealers said.
Investors rushed to buy selected high-priced electronics stocks, such as handheld device camera lens supplier Largan Precision Co (大立光) and smartphone vendor HTC Corp (宏達電), while the old economy sector suffered heavier downward pressure, led by Formosa Plastics Corp (台塑) and its affiliates, dealers said.
The weighted index closed down 15.91 points, or 0.22 percent, at 7,143.84, after moving between 7,066.28 and 7,158.74. Turnover totaled NT$57.77 billion (US$1.99 billion) during the session.
HTC outlook brighter: report
HTC Corp (宏達電), Asia’s second-largest smartphone maker, was raised to “overweight” from “underweight” by Morgan Stanley after the company settled global lawsuits with Apple Inc.
HTC shares gained 1.50 percent to close at NT$237.50.
“We think HTC’s competitive new devices reopen a window to share gains in the US — a key to enhancing brand awareness in other regions,” Morgan Stanley said in a report yesterday.
Next year “may not be as bad as many feared for HTC,” the report said.
The brokerage raised its target share price on HTC to NT$298 from NT$175 and also lifted its estimates for next year’s earnings per share by 42 percent to NT$23.96.
Taiwan 16th-best for business
Taiwan has made a massive leap to become the 16th-best country for business, according to the results of a survey conducted by US-based Forbes magazine.
Taiwan, which ranked 26th in a similar poll last year, only trails third-ranking Hong Kong and fourth-ranking Singapore among the Asian economies on Forbes’ 2012 “Best Countries for Business” list.
New Zealand replaced Canada to lead this year’s list thanks to “a transparent and stable business climate that encourages entrepreneurship,” Forbes said.
Denmark was second, up from fifth. Hong Kong maintained last year’s third placed ranking, Singapore ranked fourth and Canada slid from the top of the list last year to No. 5 this year, the magazine said.
The sixth-to-10th-ranked countries were Ireland, Sweden, Norway, Finland and the UK, in that order.
AU Optronics’ innovation award
AU Optronics Corp (友達光電) said it has been recognized as one of Taiwan’s five most innovative enterprises this year.
The company, along with Taiwan Semiconductor Manufacturing Co (台積電), Asustek Computer Inc (華碩), Hon Hai Precision Industry Co (鴻海) and MediaTek Inc (聯發科), was named on Wednesday as a winner of this year’s Thomson Reuters Taiwan Innovation Awards.
The award is granted by the Intellectual Property and Science business of Thomson Reuters. It is given to enterprises and academic institutions headquartered in Taiwan for their innovation in research and development.
Five academic organizations also received the award this year. They are the Industrial Technology Research Institute, National Chiao Tung University, National Chung Hsing University, National Taiwan University and National Tsing Hua University.
NT$ drops against greenback
The New Taiwan dollar lost ground against the US dollar yesterday, declining NT$0.017 to close at NT$29.142 as the local central bank stepped in to boost the value of the greenback, dealers said.
Turnover totaled about US$590 million during the trading session.