TAIEX rises 0.02 percent
Share prices closed slightly higher yesterday, with the TAIEX moving up 1.56 points, or 0.02 percent, to close at 7,772.13.
The local bourse opened at 7,735.6 and fluctuated between a low of 7,725.82 and a high of 7,772.54 during the day’s trading. Market turnover totaled NT$77.98 billion (US$2.46 billion).
Three major stock categories gained ground, with textile issues gaining the most at 1 percent.
Foreign investors and Chinese qualified domestic institutional investors were net buyers of NT$1.42 billion in shares.
Asustek drops on Europe plan
Shares in Asustek Computer Inc (華碩), maker of the Eee PC low-cost netbook, fell to their lowest in nine months in Taipei trading after the company said it may cut shipments to Europe to combat the declining euro.
Asustek dropped 5 percent to close at NT$50.5 yesterday.
The company may choose to decline orders from Europe next quarter as the falling euro lowers the New Taiwan dollar value of its sales to the region, Asustek chief executive officer Jerry Shen (沈振來) said in an interview on Thursday.
“We’ll make the decision that if we’d lose money on that kind of order, we may not take it,” Shen said.
Taipei-based Asustek hedges its euro exposure one quarter in advance and will make a decision on third-quarter orders and hedging by the end of this month, he said.
Europe accounted for 41 percent of Asustek’s revenue in the first quarter.
Cutting orders to Europe “means slower growth and slower shipments as they want to maintain margins,” said Steven Tseng (曾緒良), who rates the stock “buy” at RBS Asia Ltd in Taipei. “Management will want to make a decision on whether margins are more important or market share is more important.”
Computex to start on June 1
Computex Taipei, the world’s second-largest computer trade show, is scheduled to start on June 1 and is expected to attract 35,000 potential foreign buyers, the organizer said yesterday.
The five-day trade exhibition, the largest of its kind in Asia, will highlight e-readers, cloud computing technology, tablet computers and wireless and 3D technology, the semi-official Taiwan External Trade Development Council said.
“The exhibition will feature the most updated information technology developments,” show manager Thomas Huang (黃文榮) said. “We also expect the exhibition to create about US$20 billion in business for the local IT industry.”
Computex Taipei, which will celebrate its 30th anniversary this year, will accommodate 1,715 exhibitors from all over the world, occupying 4,861 booths. The booth number is up 8 percent from last year, according to TAITRA.
NT dollar gains erased
The New Taiwan dollar declined yesterday, erasing earlier gains, on speculation policy makers intervened to curb currency appreciation and support exports.
The local dollar was sold in the last minute, according to two traders familiar with the central bank’s operations, who declined to be identified. The NT dollar was little changed from last Friday as the monetary authority entered the market on all but one day this week, offsetting sales of the greenback by the nation’s exporters.
“The NT dollar will be trading in a narrow range,” said Henry Lin, a Taipei-based currency trader at Taiwan Shin Kong Commercial Bank (新光銀行). “At NT$31.70, exporters will sell their US dollars. I think the central bank will intervene again.”
The NT dollar dropped 0.2 percent to close at NT$31.848 against its US counterpart on turnover of US$473 million.
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