Investors lock in profits
Shares closed little changed yesterday after investors locked in profits accumulated during the market's recent rallies toward seven-year highs, dealers said.
They said profit-taking was triggered by the central bank's move to curb further capital outflows by hiking key interest rates 25 basis points and raising the reserve ratio for foreign currency deposits.
However, the downside was limited as investors also expected authorities will want to maintain the market's bullish tone going forward.
The TAIEX closed down 5.60 points at 8,846.39 on turnover of NT$179.49 billion (US$5.46 billion). Risers led decliners 883 to 328, with 159 stocks unchanged.
For the week to June 22, the weighted index closed up 272.75 points or 3.18 percent after a 3.29 percent rise the previous week.
Average daily turnover rose to NT$187.92 billion from NT$141.34 billion.
Toothpaste considered safe
The Bureau of Standards, Metrology and Inspection assured the public yesterday that toothpaste brands sold in the local market were found to contain acceptable levels of diethylene glycol.
After receiving reports from the Dominican Republic last month that toothpaste made in China contains the harmful ingredient diethylene glycol, the bureau inspected toothpaste products sold in major retail stores, supermarkets and night markets from May 25 to June 13.
In a statement issued yesterday, the bureau said that the eight Chinese brands that have been identified as tainted products were not sold in Taiwan.
Of 25 brands imported from China, only 10 were found to contain a small volume of diethylene glycol, ranging from 0.0001 percent to 0.0085 percent, which is within safety limits, the statement said.
Dassault orders more rudders
The state-owned Aerospace Industrial Development Corp (AIDC, 漢翔) received another purchase order for 50 airplane rudders from Dassault Aviation at the Paris Air Show, an AIDC spokesman said yesterday.
The order came after the French firm awarded a Certificate of Compliance to AIDC on June 18 for delivery of the 600th rudder for Falcon-series aircraft, which is part of a cooperation project between the two companies.
AIDC has been given more orders thanks to its ability to meet the client's needs for quality and meet the delivery date, the spokesman said, adding that Dassault Aviation was studying the feasibility of outsourcing the manufacturing of other airplane parts to AIDC.
AIDC began the production of rudders for Falcon 50, 900 and 2000 series passenger aircraft after the companies signed an agreement in April 1995, the spokesman said.
AIDC received a Certificate of Quality from Dassault Aviation in June the following year and delivered the first rudder to the French firm in October of that year, he added.
Budget airlines challenge rivals
Low-cost airlines in the Asia-Pacific region are expected to double market share to 25 percent by 2012 after a slew of aircraft orders as they increasingly challenge their full-service rivals, a regional consultancy said yesterday.
Based on known orders, the region's budget carrier fleet would increase from about 300 aircraft with 45,000 seats to around 870 planes with 170,000 seats by 2012, the Center for Asia-Pacific Aviation said in a commentary.
"A swag of new orders by Asia-Pacific LCCs [low-cost carriers] will propel the sector to 25 percent of total seats in the region within five years -- double their current penetration," the research and consultancy firm said.
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