TAIEX rises 1.32 percent
Taiwanese shares closed up 1.32 percent yesterday, tracking gains on Wall Street and regional markets, dealers said.
The TAIEX index rose 98.07 points to 7,536.05 on turnover of NT$146.02 billion (US$4.57 billion).
Gainers led losers by 1,783 to 748 with 238 stocks unchanged.
The market rose on gains in Wall Street and Asian bourses as well as a stronger local currency against the US dollar, Capital Securities trader Diana Wu said.
“Some are concerned about the impact of the rising Taiwan dollar on technology companies, but other currencies ... are also rising, so it may not necessarily hurt Taiwan’s competitiveness,” she said.
CPC may use various currencies
State-run CPC Corp, Taiwan (CPC, 台灣中油) said it was studying whether to use a basket of currencies to pay for crude oil purchases.
“Our finance department is studying where to use a variety of currencies, including the yen, the euro and the dollar, for crude oil trade, compared with only the dollar now,” CPC vice president Lin Maw-wen (林茂文) said in a telephone interview yesterday. “Our purchases are relatively small, so we’ll just follow the trend.”
Criticism of the US dollar’s role as the world’s main reserve currency has grown in the wake of the global financial crisis. Formosa Petrochemical Corp (台塑石化), CPC’s smaller rival, has been using euros and yen to pay for crude oil purchases from Iran, Lin Keh-yen (林克彥), a spokesman for the Taiwanese refiner, said by telephone.
THSRC holiday volume rises
Taiwan High Speed Rail Co (THSRC, 台灣高鐵) said in a statement yesterday that passenger volume rose 20 percent during the Mid-Autumn Festival between last Friday and Monday from last year.
THSRC added 29 trains over the holiday period to carry an extra 71,000 passengers, the statement said, adding that all trains arrived at their destinations on time.
Passengers totaled more than 430,000 during the four days with 539 trains in service, the statement said, putting the load factor at 53.05 percent, up 5.5 percentage points from last year.
The company encouraged passengers to make reservations, saying doing so online can get a 5 percent discount.
WiMAX trial run in Hsinchu
Local WiMAX license holder Global Mobile Corp (全球一動) introduced on Monday its first WiMAX trial-run service in Hsinchu, with an official commercial launch in January at the latest.
The company said 70 percent of the base station’s deployment was completed.
At present, it covers more than 70 percent of the population there and it aims to extend the coverage to 95 percent before the commercial rollout.
The company said it will launch more exciting applications to attract subscribers, in addition to the main selling point of fast Internet connection.
Companies such as Vmax Telecom Co (威邁思), Vee Telecom Multimedia Co (威達超舜) and Far EasTone Telecommunications Co (遠傳電信), the nation’s No. 3 mobile carrier, are also expected to launch WiMAX services by the end of the year or early next year.
NT dollar gains on greenback
The NT dollar gained ground against the US dollar on the Taipei Foreign Exchange yesterday, rising NT$0.075 to close at NT$32.180.
A total of US$1.39 billion changed hands during the day’s trading.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to
The US stock market has been on a tear, yet the country’s economy is in the dumps. So why do so many people believe — undoubtedly incorrectly — that the stock market has decoupled from reality? The economy many people experience, while bleak, is local, personal and, for the most part, either not publicly traded or plays only a small part in the stock market’s moves. To explain why these personal experiences have so little effect on equity markets, we must look more closely at the market role of the weakest industry sectors. The surprising conclusion: The most visible and economically vulnerable