EQUITIES
Shares drop on US concerns
Local shares moved lower yesterday as turnover shrank ahead of the conclusion of a two-day policymaking meeting of the US Federal Reserve due later yesterday. Investors remained cautious throughout the session, with many wary of financial woes in the US banking sector, which pushed down shares on US markets overnight. The TAIEX closed down 83.07 points, or 0.53 percent, at 15,553.41, Taiwan Stock Exchange data showed. Turnover totaled NT$201.379 billion (US$6.55 billion), down from NT$224.355 billion on Tuesday, with foreign institutional investors selling a net NT$9.12 billion of shares on the main board, the exchange said.
ELECTRONICS
HTC posts reduced loss
HTC Corp (宏達電) yesterday reported yet another quarterly loss in the first quarter of this year, although it was its lowest loss in seven quarters. The company reported a net loss of NT$680 million in the January-to-March period, down from a net loss of NT$930 million a quarter earlier. Losses per share were NT$0.82, compared with NT$1.12 three months earlier. Dragged by its struggling smartphone business, HTC has reported a net loss nearly every quarter since the second quarter of 2015, except for the first quarter of 2018, when an asset sale helped it post a quarterly net profit. Gross margin continued to climb in the first quarter to 40.8 percent from 40.5 percent in the previous quarter, while revenue fell from NT$1.22 billion to NT$980 million over the period.
SHIPPING
TNC plans NT$2.2 payout
Taiwan Navigation Co’s (TNC, 台灣航業) board of directors yesterday proposed a cash dividend distribution of NT$2.2 per share, its highest payout since 2010. The planned dividend represents a payout ratio of 45.5 percent based on earning per share (EPS) of NT$4.83 last year. However, the bulk shipper saw net profit fall in the first quarter due to hikes in interest expenses and foreign exchange losses. Net profit declined 43 percent from a year earlier to NT$140 million, with EPS of NT$0.34. The shipper said it is cautious about its business outlook, citing a patchy economic recovery in China, ongoing trade tensions between China and the US, and global economic uncertainty, which might cause a sharp decline in the demand for bulk goods and negatively affect the rebound of freight rates for shippers.
INSURANCE
COVID-19 claims drop 70%
Non-life insurance companies’ COVID-19 insurance claims fell 70 percent last month from a month earlier to NT$3.33 billion, the lowest they have been this year, Financial Supervisory Commission data showed on Tuesday. The decrease in COVID-19 insurance claims came as the Central Epidemic Command Center in late March tightened its definition for confirmed COVID-19 cases to people with severe symptoms or those who need oxygen therapy. As of last month, total COVID-19 insurance claims had reached NT$268.3 billion since January last year, the commission’s data showed. The considerable payouts have added pressure to insurers’ bottom lines, with their combined net losses amounting to NT$167.7 billion last year, the commission said. To boost their capital adequacy, several insurers have raised NT$112.5 billion in fresh funds and three insurers are expected to inject another NT$30 billion by next month, it said.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) would not produce its most advanced technologies in the US next year, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. Kuo made the comment during an appearance at the legislature, hours after the chipmaker announced that it would invest an additional US$100 billion to expand its manufacturing operations in the US. Asked by Taiwan People’s Party Legislator-at-large Chang Chi-kai (張啟楷) if TSMC would allow its most advanced technologies, the yet-to-be-released 2-nanometer and 1.6-nanometer processes, to go to the US in the near term, Kuo denied it. TSMC recently opened its first US factory, which produces 4-nanometer
PROTECTION: The investigation, which takes aim at exporters such as Canada, Germany and Brazil, came days after Trump unveiled tariff hikes on steel and aluminum products US President Donald Trump on Saturday ordered a probe into potential tariffs on lumber imports — a move threatening to stoke trade tensions — while also pushing for a domestic supply boost. Trump signed an executive order instructing US Secretary of Commerce Howard Lutnick to begin an investigation “to determine the effects on the national security of imports of timber, lumber and their derivative products.” The study might result in new tariffs being imposed, which would pile on top of existing levies. The investigation takes aim at exporters like Canada, Germany and Brazil, with White House officials earlier accusing these economies of
Teleperformance SE, the largest call-center operator in the world, is rolling out an artificial intelligence (AI) system that softens English-speaking Indian workers’ accents in real time in a move the company claims would make them more understandable. The technology, called accent translation, coupled with background noise cancelation, is being deployed in call centers in India, where workers provide customer support to some of Teleperformance’s international clients. The company provides outsourced customer support and content moderation to global companies including Apple Inc, ByteDance Ltd’s (字節跳動) TikTok and Samsung Electronics Co Ltd. “When you have an Indian agent on the line, sometimes it’s hard
‘SACRED MOUNTAIN’: The chipmaker can form joint ventures abroad, except in China, but like other firms, it needs government approval for large investments Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) needs government permission for any overseas joint ventures (JVs), but there are no restrictions on making the most advanced chips overseas other than for China, Minister of Economic Affairs J.W. Kuo (郭智輝) said yesterday. US media have said that TSMC, the world’s largest contract chipmaker and a major supplier to companies such as Apple Inc and Nvidia Corp, has been in talks for a stake in Intel Corp. Neither company has confirmed the talks, but US President Donald Trump has accused Taiwan of taking away the US’ semiconductor business and said he wants the industry back
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