TAIEX rebounds after slump
The TAIEX yesterday staged a moderate technical rebound following Friday’s slump as bargain hunters bought into select market heavyweights, especially in the bellwether electronics sector. However, turnover remained thin as many investors stayed on the sidelines to see how tensions between Washington and Beijing play out after China unveiled plans to implement national security legislation in Hong Kong to tighten its grip on the territory, dealers said. The TAIEX closed up 60.03 points, or 0.56 percent, at 10,871.18, on turnover of NT$146.074 billion (US$4.86 billion). Foreign institutional investors sold a net NT$4.57 billion of shares, Taiwan Stock Exchange data showed. As the TAIEX closed above the 20-day moving average of 10,829, further gains are possible in the near term, dealers said, but added that any upturn would be limited amid concerns over the US-China tensions.
Money supply grows
Last month’s M1B — a measure of the money in circulation — grew 7.5 percent year-on-year from 7.02 percent in March, mainly due to faster growth in passbook savings deposits, the central bank said in a statement yesterday. However, M2 — which includes M1B, time deposits, foreign-currency deposits and mutual funds — saw annual growth decrease to 4.21 percent from 4.42 percent a month earlier, mainly due to net capital outflows and slower growth in bank loans and investments, the central bank said. For the first four months of this year, the average annual growth rates of M1B and M2 were 7.28 percent and 4.39 percent respectively, it said. That compared with average growth rates of 7.21 percent for M1B and 4.45 percent for M2 in the first three months.
Foreigners sell securities
Foreign investors sold a net NT$34.97 billion in local securities last week, after they bought NT$225.7 billion and sold NT$260.67 billion, the Taiwan Stock Exchange said in a statement yesterday. The top three securities overbought by foreign investors were handset chip designer MediaTek Inc (聯發科), contract laptop maker Quanta Computer Inc (廣達電腦) and China Airlines Ltd (中華航空), while the top three securities oversold by foreign investors were contract electronics maker Hon Hai Precision Industry Co (鴻海精密), Yuanta Financial Holding Co (元大金控) and E.Sun Financial Holding Co (玉山金控), the exchange said. Foreign investors have so far this year sold a net NT$654.38 billion in securities, the exchange said. As of Friday, foreign investors accounted for 40.48 percent of total market capitalization, it said.
UniEat to offer free service
Food service start-up UniEat Co Ltd (肚肚), which operates a joint venture with Hon Hai Precision Industry Co (鴻海精密) and Wowprime Corp (王品), is to offer free service to select restaurants to boost takeout and delivery sales. The company, newly approved by the Ministry of Economic Affairs to join a government plan designed to help restaurants boost sales amid the COVID-19 pandemic, yesterday said that it would provide up to 888 Apple Inc iPads to local restaurants. UniEat, also known as Dudoo, said it would also provide free point of sales systems to restaurant operators via its Web site. The government plan allows a subsidy of up to NT$15,000 per restaurant to pay for various services.
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate
Polytronics Technology Corp (聚鼎科技) yesterday announced that it is buying Henkel AG’s thermal clad dielectric material (TCLAD) business division for US$26 million as the Taiwanese firm aims to improve its technology, product portfolio and revenue performance. Polytronics, headquartered in the Hsinchu Science Park (新竹科學園區), is a supplier of protection components and heat dissipation materials. The firm entered the metallic heat-dissipation substrate market in 2007 and developed a unique solventless production process. Its board of directors approved signing an agreement with Henkel to acquire the German chemical firm’s TCLAD division in the US. The purchase includes all assets and business interests, including equipment,
A Bollywood actor’s face tattooed on his arm, Sandeep Bacche’s devotion shocks few in India where stars enjoy semi-divine status, but even there the hallowed silver screen might be losing its shine to streaming services and pandemic fears. “Whenever things get better and theaters begin operations, I will watch three movies a day for sure just as a way to celebrate,” said the Mumbai rickshaw driver, who is recovering from the virus himself. However, others might not join the party. With cinemas shut for months due to a COVID-19 lockdown, and little prospect they will reopen soon, frustrated Bollywood producers have turned to