GVC's trading investigated
GVC Corp (致福) said prosecutors are investigating trading of its stock in the first four months of last year, when shares in the maker of computer components more than doubled. The stock then tumbled 40 percent before GVC sold unit Alpha-Top Corp (致勝科技) to Elitegroup Computer Systems Co (精英電腦) in August last year. The Liberty Times, which reported the probe earlier, said GVC Chairman Raymond Soong had been summoned on Friday for questioning, as had Vice Chairman Luo Chieh-hsiung and two other executives. "The case is now under investigation and Lite-On Group (光寶集團) will cooperate with the investigators," GVC spokesman Huang Meng-hua said. He declined to confirm whether Soong was involved in the investigation or had been questioned by prosecutors. Should any GVC executives be convicted of insider trading, they may be jailed for as long as seven years, disrupting company operations. Soong is also chairman of computer components maker Lite-On Electronics Inc., GVC's parent. GVC stock fell 5.2 percent to NT$20.2 as of 12:14 p.m. in Taipei. Lite-On Electronics fell 4.4 percent to NT$34.40. Lite-On Technology Corp. shares fell 5.1 percent to NT$56. Stock in Lite- On unit Silitek Corp. fell 5.6 percent to NT$50.5.
Taiwan Cellular profit rises
Taiwan Cellular Corp (台灣大哥大), the nation's second-largest mobile-phone provider, posted an 8 percent increase in second-quarter profit as it increased subscribers after acquiring a rival last year. Profit rose to NT$4.2 billion (US$123 million) from NT$3.9 billion a year earlier. The second-quarter profit was derived from first-half earnings, which rose 11 percent to NT$8.8 billion Taiwan Cellular, facing a market where there are as many mobile phones as people, increased subscribers by acquiring rival Transasia Telecom-munications Inc (泛亞電信) in June last year. Taiwan Cellular users in the year to June 30 rose 7.7 percent in the year to June 30 to 5.6 million, with Transasia accounting for about 20 percent, analysts said. Transasia's subscriber base has almost doubled since Taiwan Cellular acquired it," said Helen Zhu, an analyst with ABN Amro Asia Ltd. "Transasia has been doing phenomenally well." This is the first time Taiwan Cellular is consolidating Tranasia's earnings with its own, said Irene Chi, a Taiwan Cellular spokesman. Sales in the first half fell to NT$23.6 billion from NT$24.5 billion.
Chi Mei denies share sale plan
Chi Mei Optoelectronics Corp (奇美光電), Taiwan's No. 2 flat-panel display maker, denied a report that it decided to sell as much as NT$20 billion ($585 million) in shares to fund a factory. "There is a capital need, and we are evaluating all sources of financing open to us including selling shares, syndicated loans and selling convertible bonds," said Finance Manager Eddie Chen, who's in charge of submitting financing proposals to management. "No decision has been made on a share sale." The local media last week cited unidentified company officials saying the company may sell new shares overseas by December to help fund a factory. Chi Mei and rivals such as AU Optronics Corp (友達光電) are expanding to satisfy demand for the screens used in televisions and computers. Chen declined to give a timetable for when the funds will be raised.
NT dollar falls
The New Taiwan dollar fell against the US dollar yesterday, dropping NT$0.106 to close at NT$34.245. The turnover was US$590 million.
The US dollar was trading at NT$29.7 at 10am today on the Taipei Foreign Exchange, as the New Taiwan dollar gained NT$1.364 from the previous close last week. The NT dollar continued to rise today, after surging 3.07 percent on Friday. After opening at NT$30.91, the NT dollar gained more than NT$1 in just 15 minutes, briefly passing the NT$30 mark. Before the US Department of the Treasury's semi-annual currency report came out, expectations that the NT dollar would keep rising were already building. The NT dollar on Friday closed at NT$31.064, up by NT$0.953 — a 3.07 percent single-day gain. Today,
‘SHORT TERM’: The local currency would likely remain strong in the near term, driven by anticipated US trade pressure, capital inflows and expectations of a US Fed rate cut The US dollar is expected to fall below NT$30 in the near term, as traders anticipate increased pressure from Washington for Taiwan to allow the New Taiwan dollar to appreciate, Cathay United Bank (國泰世華銀行) chief economist Lin Chi-chao (林啟超) said. Following a sharp drop in the greenback against the NT dollar on Friday, Lin told the Central News Agency that the local currency is likely to remain strong in the short term, driven in part by market psychology surrounding anticipated US policy pressure. On Friday, the US dollar fell NT$0.953, or 3.07 percent, closing at NT$31.064 — its lowest level since Jan.
The New Taiwan dollar and Taiwanese stocks surged on signs that trade tensions between the world’s top two economies might start easing and as US tech earnings boosted the outlook of the nation’s semiconductor exports. The NT dollar strengthened as much as 3.8 percent versus the US dollar to 30.815, the biggest intraday gain since January 2011, closing at NT$31.064. The benchmark TAIEX jumped 2.73 percent to outperform the region’s equity gauges. Outlook for global trade improved after China said it is assessing possible trade talks with the US, providing a boost for the nation’s currency and shares. As the NT dollar
The Financial Supervisory Commission (FSC) yesterday met with some of the nation’s largest insurance companies as a skyrocketing New Taiwan dollar piles pressure on their hundreds of billions of dollars in US bond investments. The commission has asked some life insurance firms, among the biggest Asian holders of US debt, to discuss how the rapidly strengthening NT dollar has impacted their operations, people familiar with the matter said. The meeting took place as the NT dollar jumped as much as 5 percent yesterday, its biggest intraday gain in more than three decades. The local currency surged as exporters rushed to
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