Share prices close lower
Taiwan’s benchmark index closed 0.55 percent lower yesterday as investors pocketed gains posted in the previous session amid lingering concerns over the debt problems in Europe, dealers said.
The TAIEX fell 46.28 points to 8,328.63, after moving between 8,323.81 and 8,396.49, on turnover of NT$101.91 billion (US$3.38 billion).
The index opened 0.16 percent higher and moved to the day’s high on follow-through buying before pressure set in to reverse the early upside, with the index approaching the technical resistance point of around 8,400 points, dealers said.
A total of 2,357 stocks closed down and 1,443 up, while 372 remained unchanged.
Taishin to sell bonds
Taishin Financial Holding Co (台新金控) plans to sell NT$5.3 billion in seven-year unsecured subordinated bonds at a fixed rate of 2.3 percent, the Taipei-based company said in a statement to the Taiwan Stock Exchange yesterday.
The funds will be used to strengthen financial structure and boost its capital adequacy ratio, it said. The financial firm announced a preliminary plan on Oct. 14 to sell as much as NT$8 billion in unsecured subordinated bonds of more than seven years and up to 10 years.
Yuanta to reduce capital
Yuanta Securities Finance Co (元大證金), a unit of Yuanta Financial Holding Co (元大金控), will reduce capital by NT$16.5 billion, or 73.33 percent, to NT$6 billion by canceling 1.65 billion shares.
The capital reduction aims to improve group capital use and enhance the subsidiary’s earnings per share, Yuanta Financial said in a statement to the Taiwan Stock Exchange yesterday.
Fubon buys bad debts
Fubon Asset Management Co (富邦投信) bought NT$4.3 billion in non-performing loans from Standard Chartered Bank (Taiwan) Ltd (渣打銀行), NT$2.4 billion in non-performing loans from Shin Kong Life Insurance Co (新光人壽) and NT$3.4 billion in bad debts from China Development Industrial Bank (中華開發工銀), its parent Fubon Financial Holding Co (富邦金控) said in an exchange filing yesterday.
Acer sets up in Chongqing
Acer Inc (宏碁), the world’s second-largest PC vendor, said on Monday in a stock exchange filing that it would invest up to US$150 million to set up its second operating base in China in the city of Chongqing.
Acer, which already has a base in Shanghai, said the Chongqing site is expected to begin operations by the end of the first quarter of next year.
The company is scheduled to sign an agreement with the Chongqing Municipal Government early next month to formalize the investment project.
The PC vendor said the move into Chongqing is expected to help the company enhance its visibility in China and boost its competitiveness in the global market.
NT falls against greenback
The New Taiwan dollar fell 0.56 percent to NT$30.799 versus the greenback as of the 4pm close yesterday, according to Taipei Forex Inc. The currency was trading 0.7 percent stronger at NT$30.416 one minute before the close.
The central bank said in an e-mailed statement that the NT dollar’s exchange rate is “relatively stable,” comparing the local unit’s 0.56 percent fall to the Singapore dollar’s 1.27 percent decline and South Korean won’s 1.04 percent fall. Thai baht dropped 0.55 percent against the greenback yesterday, while China’s yuan was 0.08 percent lower from Monday, the central bank’s statement showed.
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ENERGY ISSUES: The TSIA urged the government to increase natural gas and helium reserves to reduce the impact of the Middle East war on semiconductor supply stability Chip testing and packaging service provider ASE Technology Holding Co (日月光投控) yesterday said it planned to invest more than NT$100 billion (US$3.15 billion) in building a new advanced chip testing facility in Kaohsiung to keep up with customer demand driven by the artificial intelligence (AI) boom. That would be included in the company’s capital expenditure budget next year, ASE said. There is also room to raise this year’s capital spending budget from a record-high US$7 billion estimated three months ago, it added. ASE would have six factories under construction this year, another record-breaking number, ASE chief operating officer Tien Wu
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