Staff writer, with agencies

Sat, Dec 15, 2012 - Page 14

TAIEX falls on ‘fiscal cliff’ fears

The TAIEX pulled back yesterday following losses on Wall Street overnight because of fresh concerns over the looming “fiscal cliff” in the US, dealers said.

Technology stocks, especially “Apple concept stocks,” led the local bourse’s downward trend, as investors scrambled to lock in profits they had accumulated in recent sessions, they said.

However, some old economy stocks proved resilient, which prevented the index from falling further, they added.

The weighted index closed down 58.32 points, or 0.75 percent, at 7,698.77, on turnover of NT$96.72 billion (US$3.32 billion).

The machinery and electronics sector scored the biggest losses among the eight major sectors, finishing down 1.2 percent.

Pulp and paper stocks shed 0.63 percent, plastics and chemicals lost 0.6 percent, and the construction sector closed down 0.59 percent.

Financials fell 0.54 percent, cement stocks lost 0.14 percent and foodstuffs dropped 0.13 percent, while textiles bucked the downtrend, rising 0.57 percent.

Nanya raises NT$9bn in sale

Nanya Technology Corp (南亞科技), the nation’s largest DRAM chipmaker, has raised NT$9 billion by selling as many as 5.29 billion common shares at NT$1.7 per share through a private placement.

The buyers were four of its Formosa Plastics Group (台塑集團) affiliates — Formosa Plastics Corp (台塑), Nan Ya Plastics Corp (南亞塑膠), Formosa Chemicals and Fiber (台化) and Petrochemical Corp (台塑石化) — with each firm subscribing to 1.32 billion shares, according to separate filings by the four companies.

The chipmaker said it planned to use the proceeds to improve its financial structure, repay bank loans and replenish its operating funds, the company said in a filing to the Taiwan Stock Exchange yesterday.

TLC raises IPO price

Taiwan Liposome Co Ltd (TLC, 台灣微脂體) yesterday announced that it was raising its initial public offering (IPO) price from NT$128 to NT$158, with the stock debuting on the GRETAI Securities Market on Friday next week.

The company plans to issue 4.62 million new shares and raise NT$730.28 million to improve its gross margin and strengthen its bottom line.

TLC developed drugs used to treat breast cancer and ovarian cancer (such as Lipo-Dox and Doxisome), as well as peripheral vascular disease (ProFlow).

The company is expected to invest NT$1.15 billion to develop new drugs from this year through 2016.

Laser alliance formed

More than 100 companies involved in laser machinery, manufacturing and applications yesterday gathered together to form the Laser Valley Industry Alliance in southern Taiwan.

The alliance expects to integrate the resources of companies in the area to form laser “clusters” and a strong supply chain.

Jon Hsu (徐紹中), executive director of the Industrial Technology Research Institute’s (工研院) southern branch, said that in the initial stage, the “Laser Valley” project would increase the industry’s output from NT$4 billion now to NT$20 billion by 2016.

He said the US, Japan and European countries are also developing this key technology because of its many applications — in welding, cutting, drilling, imaging, 3D printing and biomedical operations — and Taiwan does not want to be left behind.

NT$ slides against greenback

The New Taiwan dollar dropped against the US dollar yesterday, declining NT$0.001 to close at NT$29.102.

Turnover was US$705 million.