Share prices drop sharply
Share prices closed sharply lower yesterday amid fears that first-quarter earnings, particularly exporters, may be hurt by the NT dollar's recent appreciation, dealers said.
The weighted index closed down 152.87 points or 1.78 percent at the day's low of 8,419.72, after moving to a high of 8,608.95 on turnover of NT$131.49 billion (US$4.34 billion).
Decliners led risers 1,541 to 642, while 282 stocks were unchanged.
A total of 53 stocks closed limit-down and 11 limit-up.
Airlines raise surcharges
China Airlines Ltd (中華航空) and EVA Airways Corp (長榮航空), Taiwan's two largest carriers, will raise surcharges on overseas flights by 11 percent because of higher fuel costs.
Short-haul levies will climb by US$2.50 per trip to US$25, effective April 15, while those on flights to Europe and the US will rise by US$6.50 to US$65, the Civil Aeronautics Administration in Taipei said on its Web site yesterday.
The carriers are following Cathay Pacific Airways Ltd (國泰航空) and other Asian airlines in raising surcharges because of surging jet fuel prices. The cost of jet fuel, most Asian carriers' biggest expense, has jumped 56 percent in Singapore trading in the past year.
The new levies are the first increases since Dec. 17. The price of jet fuel fell 2.8 percent to U$125.30 a barrel yesterday in Singapore.
Qisda Corp gets share boost
Local electronics maker Qisda Corp (佳世達) yesterday said their biggest shareholder AU Optronics Corp (友達光電) and China Development Industrial Bank (中華開發工銀) have subscribed to a share offer for NT$5 billion via a private placement.
The deal will make the bank's parent company, China Development Financial Holdings Corp (中華開發金控), the second-largest Qisda shareholder with a stake of 7.69 percent, overtaking Acer Inc.
China Development Industrial Bank subscribed to 1.36 billion Qisda common shares for approximately NT$3 billion.
Panel maker AU Optronics bought 90.46 shares for almost NT$2 billion with shareholding to expand to 9.58 percent from 5.12 percent.
Qisda said the share offering aimed to replenish operating cash and improve the company's debt ratio.
SinoPac reports loss
SinoPac Financial Holding Co (永豐金控) yesterday reported NT$1.227 billion in after-tax losses for last month after its subsidiary Bank SinoPac (永豐銀行) suffered losses of NT$1.287 billion from long-term equity investments last month, a company press statement released yesterday said.
The company's earning per share (EPS) was pushed into the red at negative NT$0.17, compared with a NT$0.08 EPS, or NT$586 million in net incomes, one year earlier, the statement said.
As of late last month, Bank Sinopac topped 12 other domestic banks in booking the highest amount of NT$3.8 billion in total impaired assets among its US$350 million investment in structured-investment vehicles.
NT dollar closes higher
The NT dollar closed 0.29 percent higher yesterday on the back of exporters' selling of US dollars, dealers said.
The NT dollar also gained support after investors built up short positions in the US dollar non-deliverable forwards contracts, they said.
The NT dollar rose NT$0.087 to close at NT$30.318 against the greenback.
Turnover was US$1.578 billion on the Taipei Forex Inc, up from US$1.465 billion the previous day.
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