Small-caps drag down TAIEX
Share prices in Taiwan edged lower yesterday, dragged down by losses on small-cap shares and foreign issued stocks, after a reported suspension of government buying of such stocks. The benchmark weighted index finished down 1.03 points, or 0.01 percent, at 7,129.0, as turnover shrunk to NT$53.09 billion (US$1.82 billion).
Most of the market’s eight major stock categories closed up, with plastics and chemical shares scoring the highest gains, climbing 1.47 percent.
Dah Chang Securities (大昌證券) said that if trading volume continues to shrink, it may weaken market confidence and be a further drag on the local bourse.
However, if US stocks remain stable, the TAIEX could remain at about 7,100 points, Waterland Securities (國票綜合證券) said.
FSC OKs property regulations
The Financial Supervisory Commission yesterday approved plans to tighten requirements for domestic life insurance companies wishing to buy real estate, raising the minimum yields on property investments to 2.875 percent from the current 2.125 percent, the regulator said in a statement.
The commission said it arrived at the rate by adding 1.5 percent to interest rates for two-year time savings.
The regulator also bans life insurers from reselling undeveloped land within 10 years of purchase and existing commercial properties within five years to curb property speculation, the statement said.
In addition, all property investments must obtain board approval after fair assessments on their legality and profitability outlook, the statement said.
Leasehold contracts are not subject to the 10-year ban, the commission said, adding that it would make exceptions if necessary.
UMC appoints new CEO
United Microelectronics Corp (UMC, 聯電), the world’s No. 2 contract chipmaker, yesterday said its board appointed senior vice president Yen Po-wen (顏博文) to be the company’s new chief executive officer, succeeding Sun Shih-wei (孫世偉), a company statement said.
The move is intended to strengthen UMC’s competitiveness as Yen leverages his successful 300mm manufacturing experience as the company brings its new multibillion dollar Fab 12A factory expansion online.
Winbond takes massive loan
Local memory chipmaker Winbond (華邦電子) yesterday said it had obtained a NT$5 billion syndicated loan from 10 local banks, including Chinatrust Commercial Bank (中國信託), Taishin International Bank (台新銀行) and First Commercial Bank (第一銀行).
Winbond said it would use the loan to fund company operation and to repay existing bank loans.
uPI acquitted in patent suit
Asustek Computer (華碩電腦) subsidiary uPI Semiconductor Corp (力智電子) yesterday said the US International Trade Commission ruled its new product lineup did not infringe on Richtek Technology Corp’s (立錡) patents.
In a complaint submitted during an enforcement procedure on July 21 last year, Richtek accused uPI of violating a consent order, alleging that the company’s uP01xx, uP15xx, uP16xx and uP17xx products infringed three of its patents.
uPI yesterday said it had stopped exporting the products to the US after the consent order went into effect on Aug. 13, 2010, adding that it would strictly follow the order.
NT dollar up on greenabck
The New Taiwan dollar rose by NT$0.07 against the US dollar yesterday to close at NT$29.202.
Turnover totaled US$457 million during the trading session.