Taiwan High Speed Rail Corp (THSRC, 台灣高鐵) shares soared 58.75 percent to close at NT$24.05 yesterday on the first day of their listing on the Taiwan Stock Exchange’s main board.
While the broader market suffered downward pressure, led by the bellwether electronics sector, THSRC shares were the highlight of the market due to their attractive listing price of NT$15.13, amid hopes that the company will continue to generate a stable revenue stream, dealers said.
The benchmark TAIEX fell 0.67 percent to 9,299.55 points.
Photo: CNA
Investors pushed THSRC shares above the NT$20 mark soon after the market opened and the momentum continued throughout the trading session.
“The broader market is in consolidation mode, with the high-tech sector weakening, so it was no surprise that investors wanted to park their funds in a stock like THSRC, to enjoy the honeymoon period of the new listing,” Hua Nan Securities Co (華南永昌證券) analyst Kevin Su (蘇俊宏) said. “More importantly, THSRC is a defensive stock, as it has become profitable and is generating a stable revenue stream.”
“The listing price was attractive to many investors, as the stock hit an intra-day high of NT$21.90 on the emerging market in mid-September,” Su said.
THSRC posted NT$20.05 billion (US$648 million) in sales, or earnings per share of NT$0.4, in the first half of the year.
Its average number of daily passengers rose to 153,000 this year from 43,000 in 2007. As at the end of last month, accumulated passenger numbers totaled 389 million.
THSRC began a financial restructuring last year in a bid to become profitable. The company cut its paid-in capital by 60 percent, or NT$39.1 billion, to make up its losses, and then raised its paid-in capital by NT$30 billion, with the government’s stake in the company rising to 63.9 percent from 22.1 percent.
Due to the financial restructuring, the Ministry of Transportation and Communications agreed to extend the firm’s concession period from 35 to 70, which has laid the foundations for the company to start making a profit.
DIVIDED VIEWS: Although the Fed agreed on holding rates steady, some officials see no rate cuts for this year, while 10 policymakers foresee two or more cuts There are a lot of unknowns about the outlook for the economy and interest rates, but US Federal Reserve Chair Jerome Powell signaled at least one thing seems certain: Higher prices are coming. Fed policymakers voted unanimously to hold interest rates steady at a range of 4.25 percent to 4.50 percent for a fourth straight meeting on Wednesday, as they await clarity on whether tariffs would leave a one-time or more lasting mark on inflation. Powell said it is still unclear how much of the bill would fall on the shoulders of consumers, but he expects to learn more about tariffs
NOT JUSTIFIED: The bank’s governor said there would only be a rate cut if inflation falls below 1.5% and economic conditions deteriorate, which have not been detected The central bank yesterday kept its key interest rates unchanged for a fifth consecutive quarter, aligning with market expectations, while slightly lowering its inflation outlook amid signs of cooling price pressures. The move came after the US Federal Reserve held rates steady overnight, despite pressure from US President Donald Trump to cut borrowing costs. Central bank board members unanimously voted to maintain the discount rate at 2 percent, the secured loan rate at 2.375 percent and the overnight lending rate at 4.25 percent. “We consider the policy decision appropriate, although it suggests tightening leaning after factoring in slackening inflation and stable GDP growth,”
Greek tourism student Katerina quit within a month of starting work at a five-star hotel in Halkidiki, one of the country’s top destinations, because she said conditions were so dire. Beyond the bad pay, the 22-year-old said that her working and living conditions were “miserable and unacceptable.” Millions holiday in Greece every year, but its vital tourism industry is finding it harder and harder to recruit Greeks to look after them. “I was asked to work in any department of the hotel where there was a need, from service to cleaning,” said Katerina, a tourism and marketing student, who would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RSS