EQUITIES
US markets boost TAIEX
The TAIEX yesterday gained ground, as investors were encouraged by a strong showing by US markets on Friday last week on the back of rising optimism about a trade deal between Washington and Beijing, dealers said. However, turnover remained thin, with many investors staying on the sidelines amid concerns that the local stock market could suffer a major pullback following solid gains, they said. The TAIEX closed up 74.18 points, or 0.64 percent, at the day’s high of 11,599.78, on turnover of NT$108.464 billion (US$3.56 billion). Foreign institutional investors bought a net NT$3.12 billion of shares on the main board, Taiwan Stock Exchange data showed.
TAX REVENUE
Ratio hits 10-year high
Total tax revenue as a percentage of GDP was 13.4 percent last year, up from 12.9 percent the previous year and the highest since 2008, Ministry of Finance data showed. The ratio for this year is likely to stay at about 13.4 percent and drop to 13 percent next year, Minister of Finance Su Jain-rong (蘇建榮) said at a meeting of the legislature’s Finance Committee yesterday. However, the ministry aims to raise the ratio to 15 percent in the long term to maintain the nation’s fiscal stability, Su said.
CORPORATE DEBT
Orsted to sell ‘green’ bonds
Orsted A/S “green” bonds are scheduled to be listed and traded on the over-the-counter market today, the Taipei Exchange said. Through its subsidiary Orsted Wind Power TW Holding A/S, the Danish energy developer is issuing NT$12 billion of green bonds to finance its offshore wind development projects in the nation. Orsted’s bonds comprise a NT$4 billion tranche with a maturity of seven years and a 0.92 percent coupon, and an NT$8 billion tranche with a maturity of 15 years and a 1.5 percent coupon, the exchange said. The bonds are to be offered to professional institutional investors, rather than to retail investors, the exchange said.
EARNINGS
Listed firms’ results mixed
Aggregate revenues and pretax earnings of listed companies in the first three quarters of this year showed mixed results, Taiwan Stock Exchange data showed. In the first nine months, aggregate sales by companies listed on the exchange rose 0.07 percent year-on-year to NT$20.03 trillion, while pretax income fell 16.73 percent year-on-year to NT$1.49 trillion. Increases in profit were led by banking and insurance companies, as well as cement suppliers, while plastics, semiconductor and oil-and-gas companies were the hardest hit, the exchange said.
INSURANCE
Aviva unveils Asia plans
Aviva PLC said it plans to retain its Chinese joint venture and its assets in Singapore, while continuing to explore options for some other businesses in Asia. “Aviva’s Singapore and China business units delivered double-digit [percentage] operating profit growth in 2018 and are earning attractive returns,” a company statement released yesterday said. “Both countries are expected to pay dividends to group center in 2019.” The London-based insurer said that its joint venture in China would be retained because of its “high growth prospects” and the scale of the Chinese market. Aviva is continuing to explore “strategic” options for its Vietnamese business, as well as its operations in Hong Kong and Indonesia, it said.
The Eurovision Song Contest has seen a surge in punter interest at the bookmakers, becoming a major betting event, experts said ahead of last night’s giant glamfest in Basel. “Eurovision has quietly become one of the biggest betting events of the year,” said Tomi Huttunen, senior manager of the Online Computer Finland (OCS) betting and casino platform. Betting sites have long been used to gauge which way voters might be leaning ahead of the world’s biggest televised live music event. However, bookmakers highlight a huge increase in engagement in recent years — and this year in particular. “We’ve already passed 2023’s total activity and
Nvidia Corp CEO Jensen Huang (黃仁勳) today announced that his company has selected "Beitou Shilin" in Taipei for its new Taiwan office, called Nvidia Constellation, putting an end to months of speculation. Industry sources have said that the tech giant has been eyeing the Beitou Shilin Science Park as the site of its new overseas headquarters, and speculated that the new headquarters would be built on two plots of land designated as "T17" and "T18," which span 3.89 hectares in the park. "I think it's time for us to reveal one of the largest products we've ever built," Huang said near the
China yesterday announced anti-dumping duties as high as 74.9 percent on imports of polyoxymethylene (POM) copolymers, a type of engineering plastic, from Taiwan, the US, the EU and Japan. The Chinese Ministry of Commerce’s findings conclude a probe launched in May last year, shortly after the US sharply increased tariffs on Chinese electric vehicles, computer chips and other imports. POM copolymers can partially replace metals such as copper and zinc, and have various applications, including in auto parts, electronics and medical equipment, the Chinese ministry has said. In January, it said initial investigations had determined that dumping was taking place, and implemented preliminary
Intel Corp yesterday reinforced its determination to strengthen its partnerships with Taiwan’s ecosystem partners including original-electronic-manufacturing (OEM) companies such as Hon Hai Precision Industry Co (鴻海精密) and chipmaker United Microelectronics Corp (UMC, 聯電). “Tonight marks a new beginning. We renew our new partnership with Taiwan ecosystem,” Intel new chief executive officer Tan Lip-bu (陳立武) said at a dinner with representatives from the company’s local partners, celebrating the 40th anniversary of the US chip giant’s presence in Taiwan. Tan took the reins at Intel six weeks ago aiming to reform the chipmaker and revive its past glory. This is the first time Tan
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