EQUITIES
TAIEX gains 0.43 percent
The TAIEX yesterday moved higher as the bellwether electronics sector bounced back from losses in the previous two sessions, and stocks in the tourism and biotech sectors also performed well. However, the upturn was capped after the benchmark index briefly breached the five-day moving average of 15,811 points. Turnover was also thin as many investors remained on the sidelines ahead of the upcoming five-day Tomb Sweeping Day holiday starting on Saturday. The TAIEX closed up 68.28 points, or 0.43 percent, at 15,769.76. Turnover on the main board totaled NT$193.675 billion (US$6.36 billion), with foreign institutional investors buying a net NT$9.18 billion of shares, Taiwan Stock Exchange data showed. Taipei’s performance echoed most markets in Asia as anxiety about the global financial system began to fade. Hong Kong’s Hang Seng rose 2.1 percent, while the Shanghai Composite Index lost 0.2 percent. Japan’s benchmark Nikkei 225 advanced 1.3 percent, the KOSPI in Seoul added 0.4 percent and Sydney’s S&P/ASX 200 gained 0.2 percent. India’s S&P BSE SENSEX rose 0.5 percent, while New Zealand declined and Southeast Asian markets rose.
BANKING
Next Commercial rated ‘twA+’
Taiwan Ratings Corp (中華信評) yesterday affirmed its long-term “twA+” and short-term “twA-1”’ credit ratings for Next Commercial Bank Co (將來商業銀行), with a stable credit outlook for the virtual bank. “The stable rating outlook reflects our view that Next Bank will remain a strategically important part of Chunghwa Telecom Co (中華電信) group. We expect the bank to maintain strong capitalization and adequate liquidity in its growing phase over the next two to three years,” Taiwan Ratings said in a statement. Chunghwa Telecom is the largest shareholder in Next Bank with a 41.9 percent stake. Next Bank reported net losses of NT$1.01 billion last year and NT$1.46 billion over the past two years. Taiwan Ratings said the bank plans to expand and diversify its business operations over the next two to three years. Its ability to effectively execute its business plans, along with potential resource support from major shareholders, would help support the Web-based bank’s business stability amid market volatility, it said.
REAL ESTATE
Sinyi Realty downgraded
Taiwan Ratings Corp (中華信評) yesterday cut Sinyi Realty Inc’s (信義房屋) rating outlook on concerns over the real-estate broker’s falling profitability, weakened cash flow and debt leverage. The agency downgraded its rating outlook on Sinyi to “negative” from “stable” after affirming its long-term “twA” and short-term “twA-1” credit ratings. “The earnings before interest, tax, depreciation and amortization [EBITDA] margin of Sinyi Realty is likely to dip over the next one to two years given the downturn in the housing market in Taiwan,” the credit ratings agency said in a statement. “In addition, we believe Sinyi’s land acquisition plans and new development project launches are likely to weaken its cash flow and escalate debt leverage over the next one to two years.” The agency said that Sinyi’s transaction volume in Taiwan’s home brokerage business would decline by a middle-single-digit percentage this year, dragged down by the decreased commission rates and slowing housing prices. The firm’s EBITDA margin is predicted to decline to 12.2 percent this year and 12.7 percent next year, from 16.9 percent last year, it said.
Anna Bhobho, a 31-year-old housewife from rural Zimbabwe, was once a silent observer in her home, excluded from financial and family decisionmaking in the deeply patriarchal society. Today, she is a driver of change in her village, thanks to an electric tricycle she owns. In many parts of rural sub-Saharan Africa, women have long been excluded from mainstream economic activities such as operating public transportation. However, three-wheelers powered by green energy are reversing that trend, offering financial opportunities and a newfound sense of importance. “My husband now looks up to me to take care of a large chunk of expenses,
State-run CPC Corp, Taiwan (CPC, 台灣中油) yesterday signed a letter of intent with Alaska Gasline Development Corp (AGDC), expressing an interest to buy liquefied natural gas (LNG) and invest in the latter’s Alaska LNG project, the Ministry of Economic Affairs said in a statement. Under the agreement, CPC is to participate in the project’s upstream gas investment to secure stable energy resources for Taiwan, the ministry said. The Alaska LNG project is jointly promoted by AGDC and major developer Glenfarne Group LLC, as Alaska plans to export up to 20 million tonnes of LNG annually from 2031. It involves constructing an 1,290km
NEXT GENERATION: The company also showcased automated machines, including a nursing robot called Nurabot, which is to enter service at a Taichung hospital this year Hon Hai Precision Industry Co (鴻海精密) expects server revenue to exceed its iPhone revenue within two years, with the possibility of achieving this goal as early as this year, chairman Young Liu (劉揚偉) said on Tuesday at Nvidia Corp’s annual technology conference in San Jose, California. AI would be the primary focus this year for the company, also known as Foxconn Technology Group (富士康科技集團), as rapidly advancing AI applications are driving up demand for AI servers, Liu said. The production and shipment of Nvidia’s GB200 chips and the anticipated launch of GB300 chips in the second half of the year would propel
‘MAKE OR BREAK’: Nvidia shares remain down more than 9 percent, but investors are hoping CEO Jensen Huang’s speech can stave off fears that the sales boom is peaking Shares in Nvidia Corp’s Taiwanese suppliers mostly closed higher yesterday on hopes that the US artificial intelligence (AI) chip designer would showcase next-generation technologies at its annual AI conference slated to open later in the day. The GPU Technology Conference (GTC) in California is to feature developers, engineers, researchers, inventors and information technology professionals, and would focus on AI, computer graphics, data science, machine learning and autonomous machines. The event comes at a make-or-break moment for the firm, as it heads into the next few quarters, with Nvidia CEO Jensen Huang’s (黃仁勳) keynote speech today seen as having the ability to
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