EQUITIES
Asian markets mostly higher
Asian and European markets mostly rose yesterday as investors kept an eye on the talks to raise the US debt limit to avert a “catastrophic” default. There has been some progress on reaching a deal, but Democrats and Republicans remain at loggerheads, although US President Joe Biden said he was confident the debt ceiling would be raised. In Taipei, the TAIEX closed down 27.31 points, or 0.18 percent, at 15,475.05, with turnover of NT$189.128 billion (US$6.14 billion). Elsewhere in Asia, Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Singapore and Mumbai rose, although there were losses in Manila and Jakarta. London, Paris and Frankfurt were all up in the morning as the EU lifted its economic growth forecast for this year.
EQUITIES
Foreigners are net sellers
Foreign institutional investors last week sold a net NT$7.74 billion of local shares after selling a net NT$9.33 billion the previous week, the Taiwan Stock Exchange said in a statement yesterday. The top three shares sold by foreign investors last week were EVA Airways Corp (長榮航空), Innolux Corp (群創) and Shin Kong Financial Holding Co (新光金控), while the top three bought were Tatung Co (大同), Compal Electronics Inc (仁寶) and E.Sun Financial Holding Co (玉山金控), the exchange said. As of Friday last week, foreign investors had bought NT$153.97 billion of local shares since the beginning of this year, while the market capitalization of shares held by foreign investors was NT$19.38 trillion, or 39.85 percent of total market capitalization, it said.
EQUITIES
TIB accounts up to 190,000
The number of “Qualified Investors” on the Taiwan Innovation Board (TIB) soared to 190,000 accounts as of the end of last month, the Taiwan Stock Exchange said in a statement yesterday. That is up from nearly 90,000 accounts a year earlier. The TIB is the exchange’s new trading board for start-ups focused on the Internet of Things and artificial intelligence, as well as promising biotechnology companies and firms that produce key components. Three companies are now trading their shares on the TIB, the exchange said. To further promote the new board, the exchange plans to give away six iPhones each month through December via lucky draws, and participants in the draws could also win a Gogoro electric scooter after the number of accounts exceeds 200,000, it said.
FINANCIAL SERVICES
Shin Kong posts Q1 loss
Shin Kong Financial Holding Co (新光金控) posted a net loss of NT$9.1 billion in the first quarter of the year, making it the only local financial holding company remaining in the red during the January-to-March period. That came as the company’s life insurance arm, Shin Kong Life Insurance Co (新光人壽), posted a net loss of NT$11.3 billion in the quarter, the largest quarterly loss in more than five years. The financial holding company plans to raise NT$16.4 billion of new funds in the second half of this year to improve the capital structure of its flagship insurance unit. The insurer might also consider disposing of some assets to boost its capital adequacy ration. Shin Kong Life’s bottom line deteriorated due to losses on foreign corporate bonds and foreign exchange, while the high costs of high-yield insurance policies also dragged on its profitability, its parent company said.
Contract chipmaker United Microelectronics Corp (UMC, 聯電) yesterday said it has signed a memorandum of understanding (MOU) with Polar Semiconductor LLC to collaborate on the production of 8-inch wafers in the US. The collaboration aims to strengthen 8-inch wafer manufacturing in the US amid Washington’s efforts to increase onshore manufacturing of semiconductors, contribute to supply chain resilience against shifting geopolitical dynamics, and ensure a secure domestic supply of power semiconductors critical to automotive, electric grids, robotic manufacturing and data centers, the companies said in a joint statement. Under the MOU, Polar and UMC will identify devices for Polar to manufacture at
TARIFF TALKS: The US secretary of commerce is eyeing more than US$300 billion in investments and said Taiwan would train US workers, but Taipei has denied the latter US Secretary of Commerce Howard Lutnick said the US is expecting a large investment pledge from Taiwan in trade talks, while President William Lai (賴清德) listed areas that need improvement in order for projects to be completed. “We’re in the midst of discussions,” Lutnick said on Wednesday. “But the fact is, this administration’s goal is to bring semiconductor manufacturing to America.” Lai on Wednesday said Taiwan is supportive of US President Donald Trump’s goal of reindustrializing the US, including efforts to ramp up semiconductor production. Such a goal would require the US to reduce its reliance on Taiwan as a key source
The demise of the coal industry left the US’ Appalachian region in tatters, with lost jobs, spoiled water and countless kilometers of abandoned underground mines. Now entrepreneurs are eyeing the rural region with ambitious visions to rebuild its economy by converting old mines into solar power systems and data centers that could help fuel the increasing power demands of the artificial intelligence (AI) boom. One such project is underway by a non-profit team calling itself Energy DELTA (Discovery, Education, Learning and Technology Accelerator) Lab, which is looking to develop energy sources on about 26,305 hectares of old coal land in
Netflix on Friday faced fierce criticism over its blockbuster deal to acquire Warner Bros Discovery. The streaming giant is already viewed as a pariah in some Hollywood circles, largely due to its reluctance to release content in theaters and its disruption of traditional industry practices. As Netflix emerged as the likely winning bidder for Warner Bros — the studio behind Casablanca, the Harry Potter movies and Friends — Hollywood’s elite launched an aggressive campaign against the acquisition. Titanic director James Cameron called the buyout a “disaster,” while a group of prominent producers are lobbying US Congress to oppose the deal,
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