UMC (2303)closed @38.90 +1.00 vol 58,436,204 most aactive
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July 25 net purchase 21,825,000 shares
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TAIWAN WEIGHTED closed @ 4352.98 +32.39 (+0.75%)
Day's Range :4275.42 - 4365.90
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Nippon Foundry Inc., 51.74% held by UMC (2303) group, cut its 2001 financial forecasts. Nippon Foundry Inc., formerly expected to report JPY5.8bn net profits, but lowered its forecast to JPY5.0bn net loss in 2001. UMC will therefore have to recognize JPY2.6bn, or about NT$733mn, investment loss this year. We believe Nippon Foundry Inc.’s revised forecast has been anticipated by the market, thus, this news will not have a significant impact on UMC’s share price.
We estimate UMC will post NT$1.9bn net loss in 2Q01, for a negative EPS of NT$0.14. UMC will hold its 2Q01 analyst conference this afternoon. According to the “Commercial Times,” UMC will report worse than expected NT$2.5bn to NT$3.0bn loss in 2Q01, as its long-term investments in Japan in Nippon Foundry Inc. and Trecenti experienced heavy loss. |
