Shares closed 0.13 percent lower yesterday, tracking overnight falls on Wall Street after US Federal Reserve Chairman Ben Bernanke struck a cautious note on the US economy, dealers said.
They said Bernanke had instilled that note after he said the US housing sector might get worse before it gets better and that it remains a risk to consumer spending and economic growth.
Downside on the local bourse was limited, however, by the still strong expectations that there will be another rally ahead of next year's elections.
The TAIEX closed down 12.04 points at 9,473.31, on turnover of NT$232.29 billion (US$7.1 billion).
Decliners led risers 750 to 702, with 159 stocks unchanged.
"Shares continued to consolidate their gains ... [which previously] pushed the benchmark index to above 9,500 points," said Oliver Fang, a Yuanta Core Pacific Securities (
"We have not seen a decisive pullback either, for most people would not be put off by a healthy hiatus ahead of a resumed rally towards 10,000 points," he said.
Powerchip Semiconductor Corp (力晶半導體) was up 0.48 percent at NT$21.20 after booking a capital gain of NT$224.10 million from another sale of Macronix International Co (旺宏電子) shares. Last Friday Powerchip said it earned NT$212.3 million by selling 35 million shares in Macronix.
Shares of Macronix were limit-up at NT$17.50, gaining on expectations it will benefit from its close ties with client Nintendo Co. SinoPac Securities Corp (永豐金證券) analyst Sophie Chuang gave an outperform rating on Macronix yesterday, with a target price of NT$26.1.
Additional reporting by staff writer
INVESTOR RESILIENCE? An analyst said that despite near-term pressures, foreign investors tend to view NT dollar strength as a positive signal for valuation multiples Morgan Stanley has flagged a potential 10 percent revenue decline for Taiwan’s tech hardware sector this year, as a sharp appreciation of the New Taiwan dollar begins to dent the earnings power of major exporters. In what appears to be the first such warning from a major foreign brokerage, the US investment bank said the currency’s strength — fueled by foreign capital inflows and expectations of US interest rate cuts — is compressing profit margins for manufacturers with heavy exposure to US dollar-denominated revenues. The local currency has surged about 10 percent against the greenback over the past quarter and yesterday breached
MARKET FACTORS: Navitas Semiconductor Inc said that Powerchip is to take over from TSMC as its supplier of high-voltage gallium nitride chips Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday in a statement said that it would phase out its compound semiconductor gallium nitride (GaN) business over the next two years, citing market dynamics. The decision would not affect its financial targets announced previously, the world’s biggest contract chipmaker said. “We are working closely with our customers to ensure a smooth transition and remain committed to meeting their needs during this period,” it said. “Our focus continues to be on delivering sustained value to our partners and the market.” TSMC’s latest move came unexpectedly, as the chipmaker had said in its annual report that it has
Rick Cassidy, the chairman of Taiwan Semiconductor Manufacturing Co's (TSMC, 台積電) US subsidiary, TSMC Arizona Corp, plans to retire, but the company has yet to name a successor. After Cassidy made his intention to retire known, TSMC Arizona held a special general meeting and approved a resolution that Cassidy would not continue as chairman and would not remain as a director, TSMC said in a statement filed with the Taiwan Stock Exchange last night. The meeting also approved a plan to appoint TSMC Arizona president Rose Castanares as a director, the company said, adding that Cassidy has been named as an advisor
SECURITY WARNING: The company possesses key 3-nanometer technology, and Taiwan should prevent it from being transferred to China, a lawmaker said The Ministry of Economic Affairs yesterday said it would conduct a “strict review” of any proposed acquisition of Taiwanese tech company Source Photonics Co (索爾思光電), following media reports that a Chinese firm was planning to buy the company in the Hsinchu Science Park (新竹科學園區). Local media reported that Suzhou Dongshan Precision Manufacturing Co (東山精密), China’s largest printed circuit board manufacturer, had announced plans to acquire Source Photonics for 5.9 billion yuan (US$823.1 million). The ministry said it has not received an application from Source Photonics and has formally notified the company that any buyout would constitute a change in its ownership structure. The
RSS