Eurozone worries impact TAIEX
The TAIEX closed lower yesterday amid renewed concerns over the debt problems in the eurozone. Investors worried that political uncertainty in Spain and Italy would affect financial conditions in Asia, dealers said.
The high-tech sector faced downward pressure, led by smartphone vendor HTC Corp (宏達電), which lost 7 percent, the maximum daily decline, to close at NT$266 after the company gave a cautious outlook for the first quarter of this year, they said.
The weighted index closed down 36.22 points, or 0.46 percent, at 7,886.94, on turnover of NT$76.14 billion (US$2.57 billion).
Japanese took to ITRI
State-funded Industrial Technology Research Institute (ITRI, 工研院) has increasingly become the place from which Japanese medium-sized businesses seek advice, Japanese media reported on Monday.
Nikkan Kogyo Shimbun said that the ITRI is equipped with up-to-date market information on Taiwan, China and Southeast Asia, helping companies cooperate.
The report noted that the Industrial Technology Investment Corp (ITIC, 創新工業技術移轉), the venture capital arm of the ITRI, established a US$15 million fund with the Bank of Tokyo-Mitsubishi UFJ in 2011. So far, the fund has invested in three Japanese and three Taiwanese companies, the report said.
Catcher to expand in China
Metal casing manufacturer Catcher Technology Co (可成科技) said yesteray that it plans to increase investment in China’s Taizhou City by NT$4.78 billion (US$164.3 million) for expansion to accommodate strong demand for its products.
The announcement came as the company reported that last month’s revenue had increased 17.13 percent year-on-year to NT$3.3 billion from NT$2.82 billion.
Catcher attributed the revenue increase to strong demand for its casings for tablet devices.
However, last month’s figure was down 12.18 percent from NT$3.76 billion in December last year, the result of seasonally low demand for notebooks.
Catcher shares rose 0.76 percent to NT$132.5 before the company’s results were announced.
Reserves hit new highs
Taiwan’s foreign exchange reserves rose to a new high of US$406.56 billion as of the end of last month, up US$3.39 billion from a month earlier, the central bank said yesterday.
The returns from foreign exchange reserves management was the major factor responsible for the increase, as was the appreciation of the euro against the US dollar, Lin Sun-yuan (林孫源), director-general of the central bank’s department of foreign exchange, said during a press briefing.
The market value of securities investment and the NT dollar deposits held by foreign portfolio investors at the end of last month reached US$223.6 billion.
Taiwan maintained its position of holding the world’s fourth-largest foreign exchange reserves, behind China, Japan and Russia, the central bank said.
NT dollar loses ground
The New Taiwan dollar lost ground against the US dollar yesterday, declining NT$0.005 to close at NT$29.585 after the greenback recouped its earlier losses on the back of intervention by the central bank, dealers said.
After the NT dollar’s appreciation a day earlier, the central bank resumed its efforts to drag down the local currency in a bid to preserve the country’s global competitiveness, they said.
Turnover totaled US$678 million during the trading session.