TAIEX advances 1.3 percent
Share prices closed 1.3 percent higher yesterday, led by electronics stocks after computer chipmaker Intel reported better-than-expected earnings, dealers said.
The TAIEX rose 99.15 points to close at 7,695.75 on turnover of NT$148.03 billion (US$4.6 billion).
Gainers outnumbered losers 1,684 to 876, while 261 shares remained unchanged.
“Intel’s better-than-expected earnings report did help lift investor confidence, especially as some [investors] were reluctant to further increase their portfolio” after the recent sharp increase in share prices, said Steven Huang of President Securities.
Stock futures to be offered
The government aims to allow trading in futures on individual stocks before the end of the year, giving the local derivatives market a major boost, financial officials said yesterday.
The Taiwan Futures Exchange said it was preparing new rules and would submit them soon to the Financial Supervisory Commission for approval.
“Our target is for the new products to hit the market before the year’s end,” an exchange official said.
Taiwan Futures Exchange currently offers futures and options on major Taiwan stock indices, government bond futures and equity options, but not on individual stocks.
The government has so far restricted trading in derivatives in an attempt to reduce financial risk. However, officials are concerned the narrow choice of products has slowed Taiwan’s development as a regional financial hub.
NCC tells telcos to share profit
The National Communications Commission (NCC) has decided to charge a certain percentage of the profit that mobile phone service providers earn from auctioning so-called “gold numbers,” or popular numbers that carry special meanings, commission vice chairman Chen Jeng-chang (陳正倉) said yesterday.
Chen said mobile phone service providers made more than NT$5 million (US$155,000) each year on average from these numbers.
“Considering that these numbers are public resources released by the NCC to the firms with no charge, it would not be fair for mobile service operators to make a huge profit without paying anything in return,” he said, adding that details, such as the percentage to be charged, would be decided later.
“The new policy will go into effect next year the earliest,” Chen added.
PRC optimistic on sourcing
Chinese procurement from Taiwan next year is expected to surpass the figure this year, although Beijing will adopt a different procurement approach, China Council for the Promotion of International Trade vice president Zhang Wei (張偉) said yesterday.
Zhang said that from next year, Chinese procurement from Taiwan would be “normalized,” meaning procurement would be made on a regular basis rather than sending procurement groups that each spend at least NT$1 billion (US$31 million).
Zhang made the remarks in response to comments on the limited size of Chinese investment in Taiwan after the government began allowing investment in certain areas from the other side of the Strait in late June.
Official statistics showed that Chinese investments totaled a mere NT$189 million as of the end of September, far lower than public expectations.
NT dollar advances
The New Taiwan dollar gained ground against the US dollar on the Taipei Foreign Exchange yesterday, rising NT$0.060 to close at NT$32.242. Turnover was US$908 million.
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