■ Shares dip on political worries
Share prices closed 0.99 percent lower yesterday as political concerns over a drive to oust President Chen Shui-bian (陳水扁) increased after more calls for strikes to support protests in the capital, dealers said.
They said there was considerable concern that the campaign to force Chen out might now involve strikes, causing direct damage to the economy by hitting output and consumption.
The TAIEX shed 66.00 points at 6,598.87, on turnover of NT$76.16 billion (US$2.31 billion). Decliners led gainers 995 to 140, with 92 stocks unchanged.
■ Card programs win support
The Bankers Association of the ROC (銀行公會) yesterday concluded in a committee meeting that the bonus point collection scheme for newly issued credit cards should not be revoked as suggested by the financial regulator.
Committee members unanimously agreed that the consumer loyalty program shall not be restricted or annulled, an official with a leading credit card issuer said on condition of anonymity.
Their suggestions will be sent to the Financial Supervisory Commission later this month, which will hold public hearings on the issue before finalizing the regulation.
Liu Chin-fang (劉清芳), director of the supervision and coordination department of the Consumer Protection Commission, said withdrawing the bonus point scheme risks damaging consumer rights and interests, as cardholders deem it a reasonable program to boost consumer loyalty.
■ GDP forecast revised down
The Polaris Research Institute (寶華經濟研究院) yesterday revised its GDP forecast for the year to 4.25 percent, down from 4.32 percent it made in June, citing dwindling domestic consumption.
The institute predicted that private consumption will only increase by 1.73 percent this year, as the credit abuse storm continues to curb consumption, according to a statement released yesterday.
The increasing outflow of people because of the migration of industry has also changed the nation's consumption structure, which will cause growth in the sector to remain low in the future, it said.
As typhoons did not cause major damage this year, the institute lowered its prediction for consumer price index to 1.27 percent, from a 1.87 percent forecast it made in June, according to the statement.
Although crude oil prices have slid significantly, global demand as a result of economic expansion may further push up prices and pressure the nation's GDP growth, it said. The institute predicted oil prices for this year will average at around US$68 per barrel.
■ Far Eastern Geant stake sold
Casino Guichard-Perrachon SA, the biggest supermarket owner in Paris, exited Taiwan by selling its stake in a joint venture.
Far Eastern Department Stores (遠東百貨), the grocer's local partner in Taiwan, is buying the 50 percent holding in Far Eastern Geant (愛買吉安) for an undisclosed price, Saint-Etienne, France-based Casino said yesterday in a statement.
Competition is intensifying at home for Casino as rivals including Carrefour SA accelerate price-cutting strategies to win market share. That has spurred Casino to expand in emerging markets such as Brazil and Thailand in search of faster sales growth.
Selling the stake in the venture will help to reduce debt by 50 million euros (US$63.37 million), Casino said.
■ NT dollar declines
The New Taiwan dollar lost ground against its US counterpart, declining NT$0.018 to close at NT$32.915 on the Taipei foreign exchange market.
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