STOCK MARKET
TAIEX falls 1.13 percent
The TAIEX took another beating yesterday, falling more than 1 percent to end below 8,400 points as investors were motivated by steep declines on Wall Street overnight to unload large-cap stocks. The TAIEX closed down 95.97 points, or 1.13 percent, at 8,377.90, on turnover of NT$76.226 billion (US$2.36 billion). Credit Suisse Group AG has lowered its TAIEX target to 8,800 points by the end of this year, from its previous estimate of 9,000, to reflect lower earnings contributions from listed companies in the near term, according to a report on Thursday.
FINANCE
FSC eyes P2P lenders
The Financial Supervisory Commission (FSC) on Thursday said that it would summon three Web-based peer-to-peer (P2P) lenders to explain their operations over concerns about potential irregularities. The commission’s action came after one of the P2P lenders recently advertised returns of up to 30.15 percent, which exceeds the legally allowed maximum of 20 percent that may be claimed by creditors. The commission said the issue raised concerns about potential usury and potentially false advertisements touting high returns. The commission said that P2P lenders may not enable the members to securitize debts to multiple creditors, as the act might violate the Securities and Exchange Act (證交法) and regulations governing multi-level marketing.
ELECTRONICS
Unimicron posts net loss
Unimicron Technology Corp (欣興電子), a Taoyuan-based printed circuit board (PCB) maker, swung to a net loss of NT$231 million, or NT$0.15 in losses per share, in the first quarter on slow seasonal demand, the company said yesterday. Unimicron posted a net profit of NT$874 million in the previous quarter, company data showed. Gross margin fell to 9.5 percent in the first quarter from 12.5 percent and revenue dropped 13 percent quarterly to NT$15.33 billion, the company said. Unimicron remains cautious about its business outlook for this quarter and expects recovery to begin in the third quarter, chief financial officer Shen Tsai-shen (沈再生) said yesterday.
SEMICONDUCTORS
Parade EPS hits US$0.14
Parade Technologies Ltd (譜瑞), a leading video display and interface IC supplier, on Thursday reported net income of US$10.79 million for the first quarter, with earnings per share of US$0.14, the highest in the past six quarters. The company said its sales for this quarter would likely reach a range of between US$66 million and US$72 million this quarter, compared with last quarter’s US$70.63 million. The company also expects gross margin to stay between 40 percent and 43 percent, with operating expenses between US$16.5 million and US$17.5 million.On April 21, Parade announced a collaboration with Samsung Electronics Co to deliver AMOLED panels for tablets and notebook computers by useing its DP699 timing controllers.
FOOTWEAR
Yuanta positive on outlook
Given the recent strong earnings results of global footwear and sportswear brands such as Nike, Under Armour, Adidas, Skechers and Columbia Sportswear, Yuanta Securities Investment Consulting Co (元大投顧) said it is positive on this year’s outlook for the Taiwanese footwear and textile industry. Considering the Rio Olympic Games this August, Feng Tay Enterprises Co (豐泰企業), Pou Chen Corp (寶成工業) and Taiwan Paiho Ltd (台灣百和) might be major beneficiaries, driven by Nike’s strong future orders growth, Under Armour’s revenue contribution and Adidas’ new shoe upper orders, Yuanta said in a note yesterday.
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