TAIEX down 0.51 percent
Taiwanese shares fell yesterday, with the TAIEX moving down 38.78 points, or 0.51 percent, to close at 7,560.03.
The local bourse opened at 7,639.72 points and fluctuated between 7,656.95 and 7,530.41.
A total of 3.98 billion shares changed hands on market turnover of NT$119.18 billion (US$3.72 billion). Foreign institutional investors and China qualified domestic institutional investors were top sellers of NT$7.42 billion in shares.
Five of the eight major stock categories lost ground, with paper and pulp stocks shedding the most at 2.1 percent. Losers outnumbered gainers 2,166 to 994, with 236 stocks remaining unchanged.
Nanya upgraded to ‘stable’
Taiwan Ratings Corp (中華信評), a local rating arm of Standard and Poor’s, yesterday upgraded its outlook on the nation’s top computer memory chipmaker Nanya Technology Corp (南亞科技) to “stable” from “negative” amid improved profitability and a stabilizing memory chip industry.
For similar reasons, Taiwan Ratings also raised its outlook on Inotera Memories Inc (華亞科技), Nanya Technology’s memory venture with US memory company Micron Technology Inc.
The revision reflected the expectation that the memory chipmakers’ constant improvement in cost efficiency via technological upgrade would help them continue benefiting from the recovering PC memory industry and enhance their ability to generate adequate cash flow in the next three or four quarters, after swinging back to profits last quarter, Taiwan Ratings said in the report yesterday.
Macronix, IBM extend tie-up
Macronix International Co (旺宏電子), the Taiwanese memory semiconductor maker, extended a three-year agreement with IBM Corp to develop chips used to store data in consumer electronics devices.
The agreement became effective on Saturday and will end on Jan. 21, 2013, Hsinchu-based Macronix said in a filing to the Taiwan Stock Exchange yesterday that did not disclose financial terms.
STMicroelectronics expects drop
STMicroelectronics NV, Europe’s largest chipmaker, said sales through March would likely fall from the fourth quarter, when its loss narrowed on higher demand for semiconductors.
The Geneva-based company said revenue this quarter will drop by between 7 percent and 13 percent from the previous period. The fourth-quarter net loss shrank to US$70 million from US$366 million a year earlier, the company said on Tuesday night. Net revenue rose 13.6 percent to US$2.58 billion.
On Monday, Texas Instruments, the second-largest US chipmaker, forecast profit and sales that beat analysts’ estimates, fueled by demand for consumer electronics and industrial equipment.
NT dollar falls
The New Taiwan dollar fell for a second day as concern China will step up efforts to cool bank lending and economic growth prompted investors to trim holdings of local assets.
The NT dollar declined 0.1 percent to NT$32.08 against the US dollar at 4pm, Taipei Forex Inc said.
The central bank yesterday reiterated that inflows of funds must be used for their reported purposes and not for speculation in the local currency.
In an e-mailed statement, the central bank also denied that its review of the foreign exchange rules with banks caused the recent decline in Taiwanese stocks.
“The stock market isn’t doing too good,” said Yang Kung-yi (楊恭逸), a currency trader at Shanghai Commercial & Savings Bank (上海商業儲蓄銀行). “It’s a confidence issue. The tighter monetary policy in China might hurt stock market growth.”
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