TAIEX slides on profit-taking
The TAIEX pulled back yesterday as investors pocketed gains from a previous session by dumping large-cap stocks, dealers said.
The retreat was also due to increased concern over the eurozone debt crisis after Egan-Jones Ratings downgraded Spain’s credit rating and the European Central Bank rejected a plan to recapitalize financially troubled Bankia, the third-largest lender in Spain, they said.
The benchmark index closed down 80.49 points, or 1.1 percent, at 7,261.80, after moving between 7,222.88 and 7,331.64 on turnover of NT$93.85 billion (US$3.16 billion).
The plastics and chemicals sector posted the steepest decline among the eight major stock categories, finishing down 2.5 percent.
Yulon rises on subsidy talk
Shares of members of the Yulon Group (裕隆集團), the nation’s biggest domestic car maker, moved higher yesterday, amid hopes that China would launch a new subsidy program for car buyers, dealers said.
There has been widespread speculation that China would launch a new subsidy program for car buyers to stimulate the country’s sluggish domestic demand and economic growth.
According to MasterLink Securities Corp (元富證券), consumers could receive 3,000 yuan (US$472) if they purchase a car, which would benefit Yulon member firms that have investments in China, dealers said.
Yulon Motor Co (裕隆汽車) added 1.38 percent to close at NT$51.50; Yulon Nissan Motor Co (裕隆日產) gained 4.98 percent to NT$221.50; and China Motor Corp (中華汽車) rose 6.07 percent to NT$26.20.
China Steel raises NT$20bn
China Steel Corp (中鋼) yesterday raised as much as NT$20 billion from the sale of non-collateralized bonds, which will reach maturity in seven to 10 years with a yield of less than 1.5 percent.
The Greater Kaohsiung-based firm said in an e-mailed statement that it sold NT$5 billion of seven-year bonds with a yield of 1.37 percent and NT$15 billion of 10-year bonds with a yield of 1.5 percent.
The proceeds will be used to enhance the company’s working capital, the nation’s largest steelmaker said earlier.
China Steel will begin issuing the bonds in August.
Taiwanese buy local: survey
This year’s Trusted Brands Survey by Reader’s Digest showed that 51 percent of Taiwanese respondents would buy local products because they think it would help the local economy, compared with less than 40 percent in other markets, such as India, China, Singapore and Hong Kong.
The survey, in its 14th consecutive year, was jointly carried out by Reader’s Digest and global market research company Ipsos, according to a press release on Tuesday. The survey interviewed 8,000 respondents in Asia, with 1,000 of them from Taiwan, it said.
Most Taiwanese also thought simple packaging (91 percent of respondents) and environment-friendly manufacturing processes (90 percent) are the most important factors in their decisions to buy eco-friendly products, the survey showed.
It also said that 87 percent of Taiwanese respondents thought “ingredients” is the most important information on a label, outweighing other listings, such as nutritional information, the manufacturer and sources of ingredients.
NT dollar slips as euro falls
The New Taiwan dollar lost ground against the US dollar yesterday, declining NT$0.117 to close at NT$29.762 as a falling euro prompted traders to cut their local currency holdings, dealers said. Turnover was US$1.44 billion.
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