Share prices close higher
Share prices closed 0.21 percent firmer yesterday on the strength of other regional markets following gains on Wall Street, dealers said.
The TAIEX index closed up 14.48 points to 6,953.34 on turnover of NT$151.01 billion (US$4.61 billion).
Losers outnumbered gainers 1,191 to 1,109, while 192 shares remained unchanged.
The market opened high and at one stage breached the psychological 7,000 point barrier, but soon pulled back on profit-taking.
“Investors were cautious as they know there is not much upside,” said Mars Hsu of Grand Cathay Securities (大華證券).
He said he expected consolidation “contingent upon the performance of Wall Street,” which would impact Taiwan’s high-tech sector.
FSC approves Polaris plan
The Financial Supervisory Commission (FSC) yesterday gave the go-ahead to the nation’s first application submitted by Polaris Securities Group (寶來證券) to cross-list an exchange-traded fund (ETF), which tracks Hong Kong shares, on the TAIEX.
The fund, issued by subsidiary Polaris International Securities Investment Trust Co (寶來投信) in Taiwan, will invest 90 percent of its assets in a fund listed in Hong Kong, the commission said in a press statement yesterday.
Once a regulator approval is granted, Polaris is required to launch its fundraising plan within three months and complete the plan within 30 days, the commission said.
The FSC said HSBC Global Asset Management Ltd (匯豐中華投信) has submitted its applications for the cross-listing of two more funds, which are under review.
Tax cuts needed: ministry
The Ministry of Finance proposed extending tax cuts on commodities, saying the world economy remains weak though commodity prices are relatively stable.
The ministry said yesterday it would ask the Cabinet to continue a policy that has halted tariffs on imported animal feed and halved tariffs on wheat, soybean and other grain products for another six months.
Meanwhile, the ministry suggested cutting tariffs on imported butter by 25 percent, while retaining a 50 percent tariff cut on sesame and tomato paste for another six months.
The ministry said the adjustments would be in line with international commodity costs amid the recession. Previous cuts are due to expire next month.
BioBusiness forum opens
The eighth BioBusiness Asia conference, a two-day gathering of professionals in the field from around Asia, opened its doors yesterday, the event’s organizer said.
The theme of the conference is “Success through Global Alliances,” the Industrial Technology Research Institute (ITRI, 工研院) said.
With the government’s new policy, “Diamond Action Plan for Biotech Takeoff,” this year’s event has attracted particular interest from international venture capital firms, including Burrill & Co, Vivo Ventures, Giza Venture Capital and TVM, the statement said.
The Diamond Action Plan promotes opportunities in emerging sectors such as med-tech, ITRI president Johnsee Lee (李鍾熙) said at the opening ceremony.
“A strengthened life-science industry will help Taiwan weather the global financial storm to emerge stronger,” he said.
NT dollar loses ground
The New Taiwan dollar lost ground against the US dollar on the Taipei Foreign Exchange yesterday, dropping NT$0.005 to close at NT$32.799. Turnover was US$721 million.
ELECTRONICS BOOST: A predicted surge in exports would likely be driven by ICT products, exports of which have soared 84.7 percent from a year earlier, DBS said DBS Bank Ltd (星展銀行) yesterday raised its GDP growth forecast for Taiwan this year to 4 percent from 3 percent, citing robust demand for artificial intelligence (AI)-related exports and accelerated shipment activity, which are expected to offset potential headwinds from US tariffs. “Our GDP growth forecast for 2025 is revised up to 4 percent from 3 percent to reflect front-loaded exports and strong AI demand,” Singapore-based DBS senior economist Ma Tieying (馬鐵英) said in an online briefing. Taiwan’s second-quarter performance beat expectations, with GDP growth likely surpassing 5 percent, driven by a 34.1 percent year-on-year increase in exports, Ma said, citing government
‘REMARKABLE SHOWING’: The economy likely grew 5 percent in the first half of the year, although it would likely taper off significantly, TIER economist Gordon Sun said The Taiwan Institute of Economic Research (TIER) yesterday raised Taiwan’s GDP growth forecast for this year to 3.02 percent, citing robust export-driven expansion in the first half that is likely to give way to a notable slowdown later in the year as the front-loading of global shipments fades. The revised projection marks an upward adjustment of 0.11 percentage points from April’s estimate, driven by a surge in exports and corporate inventory buildup ahead of possible US tariff hikes, TIER economist Gordon Sun (孫明德) told a news conference in Taipei. Taiwan’s economy likely grew more than 5 percent in the first six months
SMART MANUFACTURING: The company aims to have its production close to the market end, but attracting investment is still a challenge, the firm’s president said Delta Electronics Inc (台達電) yesterday said its long-term global production plan would stay unchanged amid geopolitical and tariff policy uncertainties, citing its diversified global deployment. With operations in Taiwan, Thailand, China, India, Europe and the US, Delta follows a “produce at the market end” strategy and bases its production on customer demand, with major site plans unchanged, Delta president Simon Chang (張訓海) said on the sidelines of a company event yesterday. Thailand would remain Delta’s second headquarters, as stated in its first-quarter earnings conference, with its plant there adopting a full smart manufacturing system, Chang said. Thailand is the firm’s second-largest overseas
Taiwan Semiconductor Manufacturing Co’s (TSMC, 台積電) market value closed above US$1 trillion for the first time in Taipei last week, with a raised sales forecast driven by robust artificial intelligence (AI) demand. TSMC saw its Taiwanese shares climb to a record high on Friday, a near 50 percent rise from an April low. That has made it the first Asian stock worth more than US$1 trillion, since PetroChina Co (中國石油天然氣) briefly reached the milestone in 2007. As investors turned calm after their aggressive buying on Friday, amid optimism over the chipmaker’s business outlook, TSMC lost 0.43 percent to close at NT$1,150