EQUITIES
TAIEX follows US markets
The TAIEX closed higher yesterday on the back of buying spurred by Friday’s gains on US markets, which rose following better-than-expected jobs data for last month. The bellwether electronics sector led yesterday’s upturn on the main board, while buying was also seen among non-tech stocks, in particular in the electric engineering industry, giving additional support to the broader market. However, with the TAIEX exceeding 15,700 points, some investors shifted to the sell side to lock in earlier gains, while large-cap semiconductor stocks continued to move above their previous closing levels, helping the main board sustain its upturn by the end of the session. The TAIEX closed up 73.50 points, or 0.47 percent, at 15,699.57. Turnover on the main board totaled NT$214.79 billion (US$6.99 billion), with foreign institutional investors buying a net NT$5.89 billion of shares, Taiwan Stock Exchange data showed.
EQUITIES
Foreigners net sellers
Foreign institutional investors last week sold a net NT$9.33 billion of local shares after selling a net NT$38.13 billion the previous week, the Taiwan Stock Exchange said in a statement yesterday. The top three shares sold by foreign investors last week were Yang Ming Marine Transport Corp (陽明海運), Evergreen Marine Corp (長榮海運) and Winbond Electronics Corp (華邦電子), while the top three bought were Hon Hai Precision Industry Co (鴻海精密), China Development Financial Holding Corp (中華開發金控) and Ta Ya Electric Wire & Cable Co (大亞電線電纜), the exchange said. As of Friday, foreign investors had bought NT$161.71 billion of local shares since the beginning of this year, while the market capitalization of shares held by foreign investors was NT$19.54 trillion, or 39.86 percent of total market capitalization, it said.
FINANCE
Jko founder to keep reins
Jko Group (街口集團) founder Kevin Hu (胡亦嘉) yesterday said he would not relinquish control of Jko Fintech Co (街口金融科技), after food and beverage maker Taisun Enterprise Co (泰山企業) last week offered to buy a 40.4 percent stake in the subsidiary for NT$3.6 billion. Hu said Taisun would secure two director seats on Jko Fintech’s five-member board if the deal obtains regulatory approval, while Jko Group would hold the remaining three seats. Hu said the company would use the funds to raise the working capital of its electronic payment business and for expansion. Taisun’s majority shareholder, Long Bon International Co (龍邦), which has been pushing for a board reshuffle since last year, questioned the company’s decision on Saturday to invest in Jko Fintech. Hu said his company has no intention to get involved in Taisun’s management disputes.
COMPONENTS
Yageo revenue little changed
Yageo Corp (國巨), the world’s third-largest supplier of multilayer ceramic capacitors, yesterday said revenue reached NT$9.01 billion last month, little changed from March, attributable to continuing inventory adjustments on the supply chain. On an annual basis, revenue contracted 11.2 percent from NT$10.15 billion. During the first four months of this year, revenue dropped 12.8 percent to NT$35.11 billion from NT$10.27 billion a year ealier, the company said in a statement.
Semiconductor business between Taiwan and the US is a “win-win” model for both sides given the high level of complementarity, the government said yesterday responding to tariff threats from US President Donald Trump. Home to the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), Taiwan is a key link in the global technology supply chain for companies such as Apple Inc and Nvidia Corp. Trump said on Monday he plans to impose tariffs on imported chips, pharmaceuticals and steel in an effort to get the producers to make them in the US. “Taiwan and the US semiconductor and other technology industries
SMALL AND EFFICIENT: The Chinese AI app’s initial success has spurred worries in the US that its tech giants’ massive AI spending needs re-evaluation, a market strategist said Chinese artificial intelligence (AI) start-up DeepSeek’s (深度求索) eponymous AI assistant rocketed to the top of Apple Inc’s iPhone download charts, stirring doubts in Silicon Valley about the strength of the US’ technological dominance. The app’s underlying AI model is widely seen as competitive with OpenAI and Meta Platforms Inc’s latest. Its claim that it cost much less to train and develop triggered share moves across Asia’s supply chain. Chinese tech firms linked to DeepSeek, such as Iflytek Co (科大訊飛), surged yesterday, while chipmaking tool makers like Advantest Corp slumped on the potential threat to demand for Nvidia Corp’s AI accelerators. US stock
The US Federal Reserve is expected to announce a pause in rate cuts on Wednesday, as policymakers look to continue tackling inflation under close and vocal scrutiny from US President Donald Trump. The Fed cut its key lending rate by a full percentage point in the final four months of last year and indicated it would move more cautiously going forward amid an uptick in inflation away from its long-term target of 2 percent. “I think they will do nothing, and I think they should do nothing,” Federal Reserve Bank of St Louis former president Jim Bullard said. “I think the
SUBSIDIES: The nominee for commerce secretary indicated the Trump administration wants to put its stamp on the plan, but not unravel it entirely US President Donald Trump’s pick to lead the agency in charge of a US$52 billion semiconductor subsidy program declined to give it unqualified support, raising questions about the disbursement of funds to companies like Intel Corp and Taiwan Semiconductor Manufacturing Co (台積電). “I can’t say that I can honor something I haven’t read,” Howard Lutnick, Trump’s nominee for commerce secretary, said of the binding CHIPS and Science Act awards in a confirmation hearing on Wednesday. “To the extent monies have been disbursed, I would commit to rigorously enforcing documents that have been signed by those companies to make sure we get
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