TAIEX follows US stocks
The TAIEX moved lower yesterday following a plunge in US markets late last week caused by a surge in COVID-19 cases there. Large-cap stocks, in particular in the bellwether electronics sector, led the downturn, pushing the TAIEX below 11,600 points, while buying rotated to biotech stocks, dealers said. At the end of the session, the benchmark index was down 118.05 points, or 1.01 percent, at 11,542.62, on turnover of NT$206.42 billion (US$6.97 billion). Foreign institutional investors sold a net NT$13.85 billion of shares yesterday, Taiwan Stock Exchange data showed.
Foreign investors net buyers
Foreign investors bought a net NT$15.51 billion in local shares last week, after they bought NT$153.15 billion and sold NT$137.64 billion, the Taiwan Stock Exchange (TWSE) said in a statement yesterday. The top three stocks overbought by foreign investors were Taiwan Semiconductor Manufacturing Co (台積電), Hon Hai Precision Industry Co (鴻海精密) and Cathay Financial Holding Co (國泰金控), while the top three stocks oversold by foreign investors were United Microelectronics Corp (聯電), Formosa Taffeta Co (福懋興業) and King’s Town Bank (京城銀行), the TWSE said. As of Wednesday last week, foreign investors had so far this year sold a net NT$6,572.5 billion in shares and accounted for 41.1 percent of total market capitalization, the TWSE said.
Alchip profit soars 275%
Chip designer Alchip Technologies Ltd (世芯) yesterday said that net profit last month skyrocketed 275 percent annually to NT$67 million. That represented earnings per share of NT$1.11, up 271 percent from a year earlier. Revenue grew 83.5 percent to NT$556 million last month, up from NT$303 million a year earlier, the company said in a filing with the Taiwan Stock Exchange. Alchip released the monthly earnings and revenue data at the request of the stock exchange regulator due to an unusual spike in its stock price. Alchip shares yesterday closed down 3.8 percent at NT$506. They have surged about 28 percent since June 19.
Chief payout plan approved
Shareholders of Chief Telecom Co (是方電訊), a subsidiary of Chunghwa Telecom Co (中華電信), yesterday approved a plan to distribute a cash dividend of NT$8 per common share, implying a payout ratio of 102.17 percent, based on earnings per share of NT$7.83 last year. The company reported a record-high profit of NT$546 million for last year, up 5.6 percent year-on-year, and record-high revenue of NT$2.4 billion, up 5.6 percent from 2018. Chief Telecom president Liu Yao-yuan (劉耀元) told shareholders that revenue this year is likely to increase by 6 to 8 percent, while earnings could increase by a double-digit percentage point.
Nokia wins TWM contract
Telecom equipment maker Nokia Oyj yesterday said it has won a supply contract worth 400 million euros (US$451 million) from Taiwan Mobile Co (TWM, 台灣大哥大). The initial phase of the three-year deal, which includes 5G radio access networks, 5G core base stations and 5G IP multimedia subsystems, is to begin next month with the deployment of 5G non-standalone, with the aim of migrating to 5G standalone within three years, Nokia said in a statement. Nokia has supplied 2G, 3G and 4G equipment to Taiwan Mobile, which is set to launch its 5G service today.
WIN-WIN SITUATION: Customers, products and client portfolios of the companies are complementary, allowing for inroads into new fields, Chipbond’s chairman said Chipbond Technology Corp (頎邦) yesterday said it plans to acquire about a 31 percent stake in Orient Semiconductor Electronics Ltd (華泰電子) in a cash-and-share deal, aiming to make inroads into flash memory-chip packaging. Chipbond said the strategic alliance would open the door for the company to enter the flash memorychip packaging and testing market, which is a new business for the Hsinchu-based company. Chipbond primarily provides testing and packaging services for driver integrated circuits that are used in flat panels. BUSINESS OPPORTUNITY “Except for flash memory chips, we also saw a lot of new businesses that require the technologies of Chipbond or Oriental
MOMENTUM: While next-generation smartphones feature more semiconductors and vendors increase their inventory, the chipmaker remains focused on production in Taiwan Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the sole chip supplier for Apple Inc’s iPhone series, yesterday raised its revenue forecast again, saying that robust demand for 5G smartphones and high-performance-computing (HPC) would help boost revenue this year by 30 percent in US dollar terms. Three months ago, the chipmaker estimated that revenue would grow 20 percent this year from last year, reaching its long-term growth target of 15 to 20 percent annually. “Moving into the fourth quarter, we expect our growth in revenue to be supported by strong demand for our industry-leading 5-nanometer technology driven by 5G smartphone launches and HPC-related applications,”
Luxury hotel Mandarin Oriental Taipei (文華東方酒店) plans to reopen its guestrooms in December to take advantage of a boom in domestic travel. The reopening would come six months after the five-star facility suspended room operations to cut costs as countries across the region impose border controls to contain the COVID-19 pandemic, diminishing demand for business travel. “We are delighted to share that Mandarin Oriental Taipei will resume room operations on December 1,” the hotel said in a statement yesterday. The hotel in Songshan District (松山) said it would adopt stringent health and safety practices to ensure the well-being of its guests and employees. It
India’s COVID-19 economic gloom turned into despair this week, on news that its per capita GDP for this year might be lower than that of Bangladesh. “Any emerging economy doing well is good news,” Kaushik Basu, a former World Bank chief economist, said on Twitter after the IMF updated its World Economic Outlook. “But it’s shocking that India, which had a lead of 25% five years ago, is now trailing.” Ever since it began opening up the economy in the 1990s, India’s dream has been to emulate China’s rapid expansion. After three decades of persevering with that campaign, slipping behind Bangladesh hurts