TAIEX down 1.78 percent
Share prices closed lower yesterday, with the TAIEX falling 134.73 points, or 1.78 percent, to end the day at 7,424.43.
The local bourse opened at a daily high of 7,557.17. Market turnover totaled NT$86.1 billion (US$2.68 billion).
Stocks were weighed down by overnight losses on Wall Street and weakening Asian stock markets this morning, traders said, adding that most investors lacked confidence in the local market.
Falling shares outnumbered rising shares 2,376 to 574, with 232 remaining unchanged.
Foreign investors and Chinese qualified domestic institutional investors were net sellers to the tune of NT$7.83 billion.
Chunghwa Picture to cut capital
Shareholders of the nation’s No. 3 LCD panel supplier, Chunghwa Picture Tubes Ltd (中華映管), yesterday approved a management proposal to cut capital by more than 60 percent to improve the company’s finances.
After the reduction, Taoyuan-based Chunghwa Picture Tubes will have capital of NT$64.97 billion, down from NT$99.89 billion. The company plans to complete its capital reduction plan next quarter.
The annual shareholders’ meeting also approved board nominees and gave the go-ahead for a plan to sell 2 billion shares via private placement.
Compal Electronics Inc (仁寶), which purchased 20 percent of Chunghwa Picture Tubes, received a seat on the board and will now be represented by chief executive Ray Chen (陳瑞聰).
Market rules up for discussion
The Financial Supervisory Commission (FSC) said yesterday it will ask listed companies for full disclosure in their capital reduction plans to prevent irregularities.
According to statistics compiled by lawmakers, about 50 listed companies on the main board and over-the-counter (OTC) market have announced capital reduction plans to shed a total of about NT$300 billion in company capital.
FSC chairman Chen Yuh-chang (陳裕璋) said in a legislative question-and-answer session that the commission would monitor the reductions closely to ensure the rights of minority shareholders are not infringed.
Chen also said that relaxing the daily limit on share price fluctuations was “worth debating,” suggesting a departure from his predecessor’s policy.
“None of the market’s rules are unchangeable,” he said.
At present, share prices are allowed to move upward or downward by no more than 7 percent in a single trading day. The daily fluctuation limits have been in place since 1989, when they were increased from 5 percent.
‘Fat cat’ amendment approved
The legislature’s Finance Committee yesterday approved a revision to the Securities and Exchange Act (證交法), requiring all domestic publicly traded companies to set up internal remuneration committees to evaluate “reasonable salary levels” for company executives.
Throwing her support behind the so-called “fat cat” amendment, Chinese Nationalist Party (KMT) Legislator Lo Shu-lei (羅淑蕾) accused the board of Cosmos Bank Taiwan (萬泰銀行) of being outrageously overpaid.
She said that despite making losses of NT$9.4 billion in 2007, a financial position that worsened the following year, the Cosmos Bank board received total salary remuneration of NT$40 million in 2008, up from NT$12 million in 2007.
NT dollar sheds NT$0.077
The New Taiwan dollar lost ground against the US dollar on the Taipei Foreign Exchange yesterday, falling NT$0.077 to close at NT$32.175. Turnover was US$1.269 billion.
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