Shares close higher
Shares closed 1.76 percent up yesterday after Wall Street advanced deeper into record territory overnight, with sentiment also bolstered by heightened hopes for a recovery in the technology industry amid positive corporate guidance, dealers said.
Financial stocks also moved higher, benefiting from a report that the Democratic Progressive Party and the Chinese Nationalist Party (KMT) have tentatively agreed to raise the ceiling on insurers' overseas investments to 45 percent of their investment funds from 35 percent.
The TAIEX closed up 139.40 points at 8,066.06, on turnover of NT$113.23 billion (US$3.40 billion).
For the week to May 4, the weighted index closed up 116.64 points or 1.47 percent after a marginal 0.08 percent increase a week earlier.
Average daily turnover stood at NT$101.24 billion, compared with NT$96.48 billion the previous week.
Foreign exchange reserves fall
The nation's foreign exchange reserves totalled US$266.54 billion at the end of last month, down US$945 million from the US$267.49 billion recorded in the preceding month, the central bank said yesterday.
The decline was mainly due to an increase in foreign assets held by domestic investors, it said.
New directors for Cathay
Cathay Financial Holding Co (國泰金控), the nation's biggest financial group by assets, announced yesterday that its board has decided to appoint three independent directors and install an audit committee to enhance corporate governance and transparency.
The three directors-to-be are Richard Hong (洪敏弘), current chairman of Panasonic Taiwan Co (台灣松下電器) and former chairman of SinoPac Holdings (永豐金控), Huang Chin-yuan (黃清苑), board director of Hon Hai Precision Industry Co (鴻海精密), and Andrew Kuo (郭明鑑), former senior country officer of JP Morgan Taiwan and Hong Kong, Cathay Financial said in a statement.
The company said it also planned to add a panel specialized in corporate governance and strategy planning following its annual general meeting on June 15.
The amended Securities and Exchange Act (證券交易法) required the nation's financial holding firms and listed companies with capitalization exceeding NT$50 billion (US$1.5 billion) to install independent directors and optional audit committees, starting this year, in an attempt to enhance the nation's level of corporate governance.
Capxon to raise US$22 million
Capxon International Electronic Co (豐賓電子), which makes electrical components used in cars and home appliances, said it will raise a net HK174.5 million (US$22 million) in its Hong Kong initial public offering.
Capxon priced its 211.2 million shares at HK$0.93 each, it said in a statement issued through Hong Kong's stock exchange yesterday. The shares were priced near the bottom of its earlier announced range of HK$0.88 to HK$1.48.
The percentage of shares sold to the public, rather than placed with institutional buyers, rose to 30 percent from 10 percent because of demand, the statement said. Mega Capital (Asia) Co (兆豐資本), which arranged the sale, has the right to sell an additional 15 percent stake in Capxon, it said.
Shares of the Hong Kong-based, Taiwan-backed company are scheduled to begin trading in Hong Kong on Monday, the statement said.
NT dollar continues gains
The New Taiwan dollar continued gaining ground against its US counterpart yesterday, rising NT$0.001 to close at NT$33.280 on the Taipei Forex Inc.
Turnover was US$923 million.
Shares of contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) came under pressure yesterday after a report that Apple Inc is looking to shift some orders from the Taiwanese company to Intel Corp. TSMC shares fell NT$55, or 2.4 percent, to close at NT$2,235 on the local main board, Taiwan Stock Exchange data showed. Despite the losses, TSMC is expected to continue to benefit from sound fundamentals, as it maintains a lead over its peers in high-end process development, analysts said. “The selling was a knee-jerk reaction to an Intel-Apple report over the weekend,” Mega International Investment Services Corp (兆豐國際投顧) analyst Alex Huang
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is expected to remain Apple Inc’s primary chip manufacturing partner despite reports that Apple could shift some orders to Intel Corp, industry experts said yesterday. The comments came after The Wall Street Journal reported on Friday that Apple and Intel had reached a preliminary agreement following more than a year of negotiations for Intel to manufacture some chips for Apple devices. Taiwan Institute of Economic Research (台灣經濟研究院) economist Arisa Liu (劉佩真) said TSMC’s advanced packaging technologies, including integrated fan-out and chip-on-wafer-on-substrate, remain critical to the performance of Apple’s A-series and M-series chips. She said Intel and Samsung
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TRANSITION: With the closure, the company would reorganize its Taiwanese unit to a sales and service-focused model, Bridgestone said Bridgestone Corp yesterday announced it would cease manufacturing operations at its tire plant in Hsinchu County’s Hukou Township (湖口), affecting more than 500 workers. Bridgestone Taiwan Co (台灣普利司通) said in a statement that the decision was based on the Tokyo-based tire maker’s adjustments to its global operational strategy and long-term market development considerations. The Taiwanese unit would be reorganized as part of the closure, effective yesterday, and all related production activities would be concluded, the statement said. Under the plan, Bridgestone would continue to deepen its presence in the Taiwanese market, while transitioning to a sales and service-focused business model, it added. The Hsinchu
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