ENERGY
Gas not to rise over holiday
The Ministry of Economic Affairs yesterday said that state-owned oil refiner CPC Corp, Taiwan (CPC, 台灣中油) would not raise its gasoline and diesel prices if world crude oil prices increased during the Lunar New Year holiday, from Jan. 31 to Feb. 13. However, if global oil prices fall, people would likely see a downward adjustment in prices at CPC’s gas pumps, the ministry said in a statement. CPC would also keep prices of household and industrial liquefied natural gas unchanged until the end of next month, it said. Prices for 20kg cylinders of liquefied petroleum gas would remain unchanged until the end of March, it added. Separately, Taiwan Sugar Corp (台糖) yesterday said that it would not adjust prices of sugar and cooking oil products before the Lantern Festival on Feb. 15 in compliance with government policy.
EQUITIES
Rate-hike fears hit TAIEX
The TAIEX yesterday came under heavy pressure with selling sparked by steep losses on US markets overnight after a spike in the benchmark 10-year US Treasury yield, indicating fears over higher interest rates, dealers said. The higher US Treasury yield led highly priced tech stocks to lose their luster, with contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in focus, pushing the broader market below the 20-day moving average of 18,257 points at the end of the session, they said. The TAIEX closed down 151.18 points, or 0.82 percent, at 18,227.46. Turnover totaled NT$255.683 billion (US$9.25 billion), with foreign institutional investors selling a net NT$1.95 billion of shares on the main board. Shares in TSMC fell 1.21 percent to close at NT$654, and the stock’s downturn contributed about 67 points to the TAIEX’s decline.
BROKERAGES
Firms’ income tumbles 27%
The nation’s securities firms reported combined net profit of NT$7.195 billion for last month, down 26.97 percent from the previous month, the Taiwan Stock Exchange said yesterday, citing falling brokerage fee income, dealer trading income and underwriting income amid a decline in trading value on the main board during the month. For the whole of last year, securities firms reported accumulated net income of NT$105.43 billion, up 80.35 percent from 2020, as income generated from brokerage fees, dealer trading income and underwriting charges grew substantially from a year earlier amid rising stock transactions on the main board, the exchange said.
ELECTRONICS
Wiwynn posts record profit
Wiwynn Corp (緯穎科技), a cloud computing equipment supplier, on Tuesday reported record net profit of NT$8.65 billion for last year, up 0.4 percent from 2020, as consolidated revenue increased 3 percent to NT$192.63 billion, the highest in the company’s history. Earnings per share were NT$49.46, the company said in a statement. Gross margin and operating margin last year fell 0.1 percentage points apiece to 8.1 percent and 5.9 percent respectively, due to rising raw material prices and unfavorable exchange rates, Wiwynn said. The company, a subsidiary of contract electronics maker Wistron Corp (緯創), said that its computing business is likely to continue to grow steadily on the back of stable demand for devices used for remote working and online learning, as well as for artificial intelligence applications. However, supply-chain risks remain a concern, it added.
SEEKING CLARITY: Washington should not adopt measures that create uncertainties for ‘existing semiconductor investments,’ TSMC said referring to its US$165 billion in the US Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) told the US that any future tariffs on Taiwanese semiconductors could reduce demand for chips and derail its pledge to increase its investment in Arizona. “New import restrictions could jeopardize current US leadership in the competitive technology industry and create uncertainties for many committed semiconductor capital projects in the US, including TSMC Arizona’s significant investment plan in Phoenix,” the chipmaker wrote in a letter to the US Department of Commerce. TSMC issued the warning in response to a solicitation for comments by the department on a possible tariff on semiconductor imports by US President Donald Trump’s
The government has launched a three-pronged strategy to attract local and international talent, aiming to position Taiwan as a new global hub following Nvidia Corp’s announcement that it has chosen Taipei as the site of its Taiwan headquarters. Nvidia cofounder and CEO Jensen Huang (黃仁勳) on Monday last week announced during his keynote speech at the Computex trade show in Taipei that the Nvidia Constellation, the company’s planned Taiwan headquarters, would be located in the Beitou-Shilin Technology Park (北投士林科技園區) in Taipei. Huang’s decision to establish a base in Taiwan is “primarily due to Taiwan’s talent pool and its strength in the semiconductor
An earnings report from semiconductor giant and artificial intelligence (AI) bellwether Nvidia Corp takes center stage for Wall Street this week, as stocks hit a speed bump of worries over US federal deficits driving up Treasury yields. US equities pulled back last week after a torrid rally, as investors turned their attention to tax and spending legislation poised to swell the US government’s US$36 trillion in debt. Long-dated US Treasury yields rose amid the fiscal worries, with the 30-year yield topping 5 percent and hitting its highest level since late 2023. Stocks were dealt another blow on Friday when US President Donald
UNCERTAINTY: Investors remain worried that trade negotiations with Washington could go poorly, given Trump’s inconsistency on tariffs in his second term, experts said The consumer confidence index this month fell for a ninth consecutive month to its lowest level in 13 months, as global trade uncertainties and tariff risks cloud Taiwan’s economic outlook, a survey released yesterday by National Central University found. The biggest decline came from the timing for stock investments, which plunged 11.82 points to 26.82, underscoring bleak investor confidence, it said. “Although the TAIEX reclaimed the 21,000-point mark after the US and China agreed to bury the hatchet for 90 days, investors remain worried that the situation would turn sour later,” said Dachrahn Wu (吳大任), director of the university’s Research Center for
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