EQUITIES
TAIEX dips on Ukraine fears
The TAIEX closed slightly lower yesterday as market sentiment continued to be haunted by Russia’s invasion of Ukraine, which battered global equity markets overnight. Losses focused on the bellwether electronics sector, but rotational buying in old-economy stocks in a market awash in ample liquidity helped to limit the broader market’s downturn, dealers said. The TAIEX closed down 30.65 points, or 0.17 percent, at 17,867.60. Turnover totaled NT$293.357 billion (US$10.45 billion), with foreign institutional investors selling a net NT$19.27 billion of shares on the main board, Taiwan Stock Exchange data showed.
SEMICONDUCTORS
Mosel Vitelic net profit up
Foundry company Mosel Vitelic Inc (茂矽) yesterday reported that net profit grew 11.4 percent year-on-year to NT$245.24 million last year, the highest in 14 years, with earnings per share of NT$1.58. Revenue rose 5.76 percent annually to NT$1.95 billion, the highest in 10 years, the company said in a regulatory filing. The firm attributed the results to increased shipments of automotive electronic diodes and metal-oxide-semiconductor field-effect transistors, as well as rising prices for foundry orders. Its board of directors has approved a plan to distribute a cash dividend of NT$0.5 per share on Aug. 26, the company said.
APPAREL
February record for Makalot
Makalot Industrial Co (聚陽) yesterday reported consolidated revenue of NT$2.56 billion for last month, up 41.56 percent from a year earlier, but down 10.5 percent from January. The figure is the highest in the company’s history for the month of February, underlining robust demand from its brand customers in the US, as the global COVID-19 situation is gradually being brought under control, Makalot said. Combined revenue in the first two months of this year reached NT$5.42 billion, up 29.3 percent year-on-year, the company said in a regulatory filing.
MANUFACTURING
CFTC predicts rising sales
China Fineblanking Technology Co (CFTC, 和勤精機), a manufacturer of metal stamping products, yesterday forecast that sales for this year are expected to increase every quarter in light of a steady recovery in the Chinese auto market and launches of new products by the firm later this year. The Changhua County-based firm reported that revenue last month was the highest for February. It grew 12.42 percent from a year earlier to NT$189.69 million, but declined 30.2 percent from January. Auto parts accounted for 68.76 percent of the company’s total revenue, while voice coil motor plates for hard-disk drive applications contributed 27.63 percent, it said. Cumulative revenue in the first two months expanded 9.37 percent to NT$461.63 million, a record for the period.
ENTERTAINMENT
Sea shares fall on forecast
Sea Ltd (冬海) gave a muted forecast for its digital entertainment unit and its shares fell 13 percent in US trading on Monday. Investors balked as the Singapore-based mobile gaming company forecast US$2.9 billion to US$3.1 billion in bookings at its digital gaming arm, set to be its first decline ever. That compares with bookings last year of US$4.6 billion. The company sought to assuage investors by focusing on e-commerce revenue growth, which it expects to continue unabated as it focuses on the key markets of Taiwan, Brazil and Southeast Asia. It expects e-commerce sales to rise to between US$8.9 billion and US$9.1 billion this year from US$5.1 billion last year.
NEW MARKET: The partnership opens up India to the Dutch company, which already has a strong hold in the semiconductor market of South Korea, Taiwan and China ASML Holding NV entered into a partnership agreement with Tata Electronics Pvt Ltd aimed at ramping up India’s goal to develop domestic chip-manufacturing capabilities. The Dutch company’s technology would help power Tata Electronics’ planned 300 millimeter (mm) semiconductor foundry in Gujarat, according to a joint statement from the two companies on Saturday. The signing of a memorandum of understanding coincides with a visit by Indian Prime Minister Narendra Modi to the Netherlands, which is looking to deepen bilateral relations with New Delhi. ASML, whose top customers include Taiwan Semiconductor Manufacturing Co (台積電) and Samsung Electronics Co, makes lithography machines that can print
PORTFOLIO REBALANCING: The adjustments in three global equity indices reflect rising investor appetite for semiconductor and artificial intelligence-related stocks Taiwan’s weighting in major global equity indices compiled by MSCI Inc is to rise modestly following the latest quarterly review, underscoring the market’s expanding role in emerging-market portfolios, as global investors continue to favor the nation’s technology sector. Taiwan’s weighting in the MSCI Emerging Markets Index is to increase by 0.30 percentage points to 23.76 percent, after the changes take effect at the close of the May 29 session. Its weighting in the MSCI All-Country Asia ex-Japan Index is to rise 0.37 percentage points to 27.16 percent, while that in the MSCI All Country World Index is to edge up slightly to
The Hsinchu County Government’s Labor Affairs Department yesterday said that it has received a plan from cosmetics brand Taiwan Shiseido Co (台灣資生堂) detailing mass layoffs at its plant in Hukou Township (湖口). While the labor authorities did not disclose the number of employees to be laid off, Japanese news media earlier in the day reported that the closure of the company’s factory in Hukou would result in 170 employees losing their jobs. Shiseido followed the law by reporting its layoff plan, the department said, adding that authorities would closely monitor negotiations between the management and affected employees and step in if any
Hon Hai Precision Industry Co (鴻海精密) on Tuesday confirmed a cyberattack targeting some of its North American facilities, but said the affected factories were gradually returning to normal. The company, known globally as Foxconn Technology Group (富士康科技集團), said that its cybersecurity team “activated the response mechanism and implemented operational measures to ensure the continuity of production and delivery.” “The affected factories are resuming normal production,” the company said in a statement. Hon Hai had previously described it as a “technical issue,” when news of the cyberattack first surfaced. The confirmation followed media reports of a large-scale information technology system incident that broke out at
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