Fri, Oct 17, 2008 - Page 11 News List

Business Briefs

STAFF WRITER, WITH AGENCIES

TAIEX down 3.25%

Shares closed 3.25 percent lower yesterday amid deepening concerns that the current financial turmoil could lead to a severe global recession, dealers said. The weighted index fell 170.29 points to 5,075.97 on turnover of NT$28.65 billion (US$884.26 billion). Decliners outnumbered gainers 1,401 to 181, while 246 stocks were unchanged.

A total of 512 shares were limit-down, against 49 limit-ups.

Financials fell 3.37 percent, electronics dropped 3.32 percent, foods was down 3.29 percent and constructions edged down 1.71 percent.

“As international markets plunged to reflect the growing concerns about the economic downturn, today’s sharp fall at the domestic market was not surprising at all,” said Vickie Hsieh (謝雯霞) of President Securities (統一證券).

The narrowed limit-down on shares originally designed by the government to minimise the impact of the global crisis on the domestic stock market turned out to be a disaster, analysts said.

Accounting draft completed

The Financial Supervisory Commission yesterday said that it had come up with a draft revision to bring national accounting standards in line with changes in international accounting standards. The changes will allow domestic companies not to mark part of their assets to the market.

The revision will be made public today after the Accounting Research and Development Foundation completes the revision, the commission’s chief secretary Lu Ting-chieh (盧廷劼) told a media briefing yesterday.

Under the revision, domestic companies won’t have to report their outstanding losses from “tradable assets” including shares and bonds with a maturity, excluding derivatives, “in the third quarter” if they decide not to liquidate them immediately, Lu said.

The question of whether the revision will be extended in the fourth quarter of this year will be decided later, pending on the future economic and financial development, he said.

Mega unveils US investments

Mega International Commercial Bank Co (兆豐國際商銀), a unit of Taiwan’s fourth-biggest financial group, has NT$9 billion in investments tied to Lehman Brothers Holdings Inc, Merrill Lynch & Co and American International Group Inc.

Mega International has made provisions for the investments, the lender said in an e-mailed statement yesterday. The bank’s parent is Taipei-based Mega Financial Holding Co (兆豐金控).

China tightens supervision

China’s banking watchdog ordered financial institutions yesterday to tighten supervision of credit in the face of the global economic turmoil, state media reported.

The China Banking Regulatory Commission issued new instructions designed to stem the flow of funds into the stock and property markets, Xinhua news agency said.

It ordered banks and other financial players to strengthen credit management and make sure staff did not embezzle funds for investment in the stock market.

NT dollar falls to record

The New Taiwan dollar “is relatively stable,” the central bank said in a faxed statement after the currency fell to a one year low.

The local currency weakened NT$0.137, or 0.42 percent, to close at NT$32.537 against the US dollar yesterday, the Taipei Forex Inc said. The NT dollar earlier dropped as much as 0.6 percent to NT$32.602.

South Korea’s won and Singapore’s dollar posted steeper declines yesterday, the central bank said in the statement.

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