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■ TAIEX rises slightly
Share prices closed little changed yesterday in cautious trade, with bargain-hunting and probably some government support keeping select technology majors in positive territory after recent sustained losses, dealers said. The TAIEX was up 4.52 points at 5,830.79, on turnover of NT$62.59 billion (US$1.87 billion). Oliver Fang, Yuanta Core Pacific Securities assistant vice president, said concerns over the bird flu and a weakening Taiwan dollar gave foreign investors little reason to turn positive anytime soon. United Microelectronics Corp (聯電) firmed NT$0.10 to NT$19.85 after it announced a stock repurchase plan, recovering losses on a sell-off by foreign investors on Monday, while Powerchip Semiconductor Corp (力晶半導體) edged up NT$0.35 to NT$16.70, boosted by higher-than-expected earnings in the third quarter to September and a still positive outlook for the final quarter.

■ Invest in allies: MOFA
The Ministry of Foreign Affairs (MOFA) unveiled a set of financing and subsidy measures yesterday aimed at increasing the incentives for Taiwanese investors to set up operations in the country's diplomatic allies in Central and South America. According to Cho Shih-chao (卓士昭), head of MOFA's Department of Economic and Trade Affairs, the ministry has revised a related regulation to expand the industrial categories eligible for government subsidies to include the media, oil exploration and financial service sectors. In the past, only the manufacturing sector was entitled to the subsidies. While pay and rental subsidies have been increased from 20 percent to 30 percent, the loan interest subsidy has been raised to 50 percent, Cho said. The subsidy ceiling has been hiked from around NT$15 million (US$447,761) to NT$20 million, and applications will be accepted one year after operations start and that the subsidy duration will be five years. The revised regulation will be promulgated for implementation between late October and early November after it is finalized by the Cabinet, Cho said.

■ Taiwan to host bankers
Taipei will play host to the annual general meeting of the Asian Bankers Association next year, according to a resolution passed by the participants of the 22nd annual meeting of the association on Monday. The 22nd annual general meeting of the Asian Bankers Association opened on that day in Melbourne, Australia, with representatives from the banking sectors of nearly 20 of the countries participating. Jeffrey Koo (辜濂松), founder of the association and its honorary chairman, as well as chairman of the Taiwan-based Chinatrust Financial Holding Company (中信金控), addressed the two-day meeting.

■ NT dollar falling
The New Taiwan dollar had its weakest close in a year after overseas investors increased sales of the country's stocks. "The bird flu concern is a trigger for stock sales and some overseas investors have repatriated some funds," said Gary Huang, a currency trader at Union Bank of Taiwan in Taipei. The NT dollar dropped NT$0.129 to close at NT$33.579, its lowest close since Oct. 27 last year, according to Taipei Forex Inc Turnover was US$877 million, up from US$568 million the previous day. Money managers outside Taiwan in the five days ending yesterday dumped a net US$681 million of equities, according to stock exchange figures.

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