TAIEX surges on tech rebound
The TAIEX closed above the 7,300 point mark yesterday after investors bought into bargains, taking their cue from a government statement that it was time for government-run funds to pick up stocks after a recent slump, dealers said.
Buying focused on large-cap stocks, in particular Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the most weighted in the local bourse, which prompted many investors to chase prices to push the index even higher at the end of the session, they said.
Shares of TSMC, the world’s largest contract chipmaker, rose 4.60 percent to close at NT$95.50, while rival United Microelectronics Corp (聯電) gained 7 percent, the maximum daily increase, to end at NT$10.80 on a strong technical rebound.
The weighted index closed up 220.25 points, or 3.1 percent, at the day’s high of 7,326.01, off an early low of 7,148.97, on turnover of NT$84.13 billion (US$2.89 billion), up from NT$46.82 billion recorded a session earlier.
Hon Hai works with Sharp
Hon Hai Precision Industry Co (鴻海精密), the world’s largest contract electronics maker, said the company’s cooperation with Japanese consumer electronics supplier Sharp Corp continues, while talks on capital investments in the Japanese firm have yet to yield results.
Hon Hai said negotiations on further bilateral collaboration are under way and an appropriate time will be found in the future to disclose the details to the public.
The Taiwanese firm has launched 60-inch LED TVs that use flat panels manufactured by Sharp’s 10th-generation plant in western Japan, in which Hon Hai chairman Terry Gou (郭台銘) holds a 46.5 percent stake.
China Steel shares go up
Shares of China Steel Corp (CSC, 中鋼), the largest steelmaker in Taiwan, moved higher yesterday after the company raised its domestic wholesale product prices for January-February contracts on a recovery in global demand.
Investors have high hopes that the price hikes will boost China Steel’s revenue in the first quarter of next year, leaving behind its recent repeated price cuts amid the weakness of the world’s economic fundamentals, dealers said.
Shares of China Steel rose 2.40 percent to close at NT$25.55 (US$0.88), with 24.55 million shares changing hands.
On Thursday, the company announced it has raised domestic wholesale prices for January-February contracts by 0.39 percent, or NT$82 per tonne on average, from next month.
Cosmos makes cash plan
Shareholders of Cosmos Bank (萬泰銀行) yesterday approved the company’s plans to slash its capital and then raise NT$1 billion in new shares via private placements to replenish capital eroded by losses.
Under the company’s plans, Cosmos is to cut its capital by 46.54 percent, or NT$13.28 billion (US$451.9 million), to NT$15.26 billion, the company said in a filing to the Taiwan stock Exchange.
The bank is then to adopt a rights issuance of 100 million shares through private placements, with potential buyers including SAC PEI Taiwan Holdings BV and China Development Industrial Bank (中華開發工銀).
NT rallies against greenback
The New Taiwan dollar turned stronger against the US dollar yesterday, increasing NT$0.014 to close at NT$29.171 as foreign institutional buying in the local bourse boosted demand for the local unit.
Optimism toward the Asian economy on the back of improving manufacturing activity in China also encouraged traders in the region to raise their holdings in regional currencies, dealers said.
Turnover totaled US$612 million during the trading session.