An exchange-traded note (ETN) tracking top suppliers to Apple Inc is to be the first ever ETN to be traded on the Taiwan Stock Exchange (TWSE) when it is launched at the end of April, Fubon Securities Co (富邦證券) said yesterday.
Like exchange-traded funds, ETNs are designed to track an underlying index or an underlying stock, but they have a maturity date, like bonds.
They represent a type of financial derivative that authorities are hoping can diversify the product mix of local equity markets.
Fubon Securities, a fully owned subsidiary of Fubon Financial Holding Co (富邦金控), said that the ETN would trace the TIP Customized Big Apple Total Return Index compiled and managed by Taiwan Index Plus Corp (TIP, 台灣指數), a wholly owned subsidiary of TWSE that compiles indices.
The index is comprised of the nation’s 10 biggest Apple suppliers by free-flow market capitalization that meet liquidity conditions and are financially stable.
Included in the index are smartphone camera lens maker Largan Precision Co (大立光), power management solution supplier Delta Electronics Inc (台達電), integrated circuit packaging and testing firm ASE Technology Holding Co (日月光), contract chipmaker Taiwan Semiconductor Manufacturing Co (台積電) and iPhone assembler Hon Hai Precision Industry Co (鴻海).
The remaining five are metal casing maker Catcher Technology Co (可成), Apple Watch assembler Quanta Computer Inc (廣達), chip resistor maker Yageo Corp (國巨), iPhone assembler Pegatron Corp (和碩) and computer peripheral maker Lite-On Technology Corp (光寶科技).
TIP would review the index once a year after Apple updates its list of global suppliers, Fubon Securities said.
The securities house is planning to list another ETN on the Taipei Exchange that would track the TIP Highlight 20 Equal Weight Total Return Index, which is comprised of 20 stocks that have high dividends and growth potential in the electronics, financial and old economy sectors.
Real estate agent and property developer JSL Construction & Development Co (愛山林) led the average compensation rankings among companies listed on the Taiwan Stock Exchange (TWSE) last year, while contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) finished 14th. JSL Construction paid its employees total average compensation of NT$4.78 million (US$159,701), down 13.5 percent from a year earlier, but still ahead of the most profitable listed tech giants, including TSMC, TWSE data showed. Last year, the average compensation (which includes salary, overtime, bonuses and allowances) paid by TSMC rose 21.6 percent to reach about NT$3.33 million, lifting its ranking by 10 notches
SEASONAL WEAKNESS: The combined revenue of the top 10 foundries fell 5.4%, but rush orders and China’s subsidies partially offset slowing demand Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) further solidified its dominance in the global wafer foundry business in the first quarter of this year, remaining far ahead of its closest rival, Samsung Electronics Co, TrendForce Corp (集邦科技) said yesterday. TSMC posted US$25.52 billion in sales in the January-to-March period, down 5 percent from the previous quarter, but its market share rose from 67.1 percent the previous quarter to 67.6 percent, TrendForce said in a report. While smartphone-related wafer shipments declined in the first quarter due to seasonal factors, solid demand for artificial intelligence (AI) and high-performance computing (HPC) devices and urgent TV-related orders
Prices of gasoline and diesel products at domestic fuel stations are this week to rise NT$0.2 and NT$0.3 per liter respectively, after international crude oil prices increased 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 snapped a two-week losing streak as the geopolitical situation between Russia and Ukraine turned increasingly tense, CPC said in a statement. News that some oil production facilities in Alberta, Canada, were shut down due to wildfires and that US-Iran nuclear talks made no progress also helped push oil prices to a significant weekly gain, Formosa said
MINERAL DIPLOMACY: The Chinese commerce ministry said it approved applications for the export of rare earths in a move that could help ease US-China trade tensions Chinese Vice Premier He Lifeng (何立峰) is today to meet a US delegation for talks in the UK, Beijing announced on Saturday amid a fragile truce in the trade dispute between the two powers. He is to visit the UK from yesterday to Friday at the invitation of the British government, the Chinese Ministry of Foreign Affairs said in a statement. He and US representatives are to cochair the first meeting of the US-China economic and trade consultation mechanism, it said. US President Donald Trump on Friday announced that a new round of trade talks with China would start in London beginning today,
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