TAIEX posts limited gains
The TAIEX posted limited gains on profit-taking yesterday after the benchmark index moved closer to the nearest technical resistance level of 7,200 points, dealers said.
The financial sector and select old-economy stocks attracted buying during the session, offsetting the weakness of electronics heavyweights such as smartphone maker HTC Corp (宏達電) and handheld device camera lens supplier Largan Precision Co (大立光), dealers said.
Small-cap stocks, in particular companies that launched primary listings in Taiwan, staged a rebound after a slump in the previous session.
These stocks suffered heavy selling on Monday amid local media reports that the government’s Labor Insurance and Labor Pension funds had instructed discretionary account managers not to buy volatile small-cap stocks, so as to avoid losses.
The weighted index closed up 16.73 points, or 0.23 percent, at 7,145.77. Turnover totaled NT$50.96 billion (US$1.75 billion).
Rexchip repays loan
Rexchip Electronics Corp (瑞晶), a joint venture between Taiwanese DRAM chipmaker Powerchip Technology Corp (力晶) and Japan-based Elpida Memory Inc, said it had repaid NT$2.6 billion in bank loans that were due yesterday.
The NT$2.6 billion is the last part of a syndicated loan of NT$39 billion led by Hua Nan Commercial Bank (華南銀行), Rexchip spokesperson Stephen Chen (陳正坤) said in a statement submitted to the Taiwan Stock Exchange Corp.
The Houli (后里), Greater Taichung-based company must still repay a syndicated loan of NT$3.9 billion from the Land Bank of Taiwan (土地銀行) by the end of next year.
Lenovo to expand in Taiwan
Lenovo Group Ltd (聯想) said yesterday it expects to expand its presence in Taiwan next year thanks to continued growth in both commercial and consumer PC markets.
Justin Liang (梁百鋒), general manager of Lenovo’s Taiwan branch, said the company’s sales of desktop and notebook PCs in Taiwan are expected to grow at a “double-digit rate” next year, without giving any specific numbers.
The company will continue to deepen its relationship with Taiwan’s large corporate customers, expand its business in the small and medium-enterprise sector, and set up more retail locations in the country through partnerships with distributors, Liang said at a news conference.
Taipower plans overhaul
State-run Taiwan Power Co (Taipower, 台電) said on Monday it will be able to create NT$6.2 billion in extra revenue and cut NT$43.8 billion in costs in the next five years, as part of a plan to overhaul its operations.
The extra revenue is set to be created through the expansion of the company’s capacity, more flexible use of its land, the cancellation of cheaper electricity rates for employees, among other measures, Taipower said in a report in the legislature.
The reduction in costs will be achieved by actions such as seeking cheaper prices for electricity purchased from private power plants and increasing renewable energy generation. In addition, Taipower said it would reduce compensation for retirees who move on to high-ranking positions and reduce employee benefits.
NT dollar gains on greenback
The New Taiwan dollar gained ground against the US dollar yesterday, adding NT$0.057 to close at NT$29.145 as traders took cues from the strength of other currencies in the region to buy into the local unit, dealers said.
Turnover totaled US$471 million during the trading session.