US woes drag TAIEX lower
Lingering concerns over a slowing US economy dealt another blow to the TAIEX yesterday, with heavy institutional selling extending the losses of the previous session and sending the market sharply lower, dealers said.
Investor sentiment was hit hard after the Dow Jones Industrial Average fell below the psychological level of 12,000 points overnight on worse-than-expected consumer spending data, they said.
The TAIEX fell 127.86 points, or 1.49 percent, to 8,456.86, after moving between 8,360.73 and 8,471.84, on turnover of NT$146.33 billion (US$5.06 billion).
FPG revenue up 6.1 percent
Revenue at the four major subsidiaries of Formosa Plastics Group (台塑集團, FPG) rose 19.5 percent month-on-month to NT$131.6 billion last month on the back of higher prices and increasing customer demand.
For the first seven months, the four subsidiaries’ revenue reached NT$929.1 billion, an increase of 6.1 percent from a year earlier.
The four companies are Formosa Plastics Corp (台塑), Nan Ya Plastics Corp (南亞塑膠), Formosa Chemicals & Fibre Corp (台灣化學纖維) and Formosa Petrochemical Corp (台塑石化).
Following a series of fires that struck the group’s petrochemical complex in Mailiao (麥寮), Yunlin County, the group forecasts that the government’s suspension of its high-risk facilities will result in a loss of NT$1 billion per day beginning this month.
CEPD publishes annual report
The Council for Economic Planning and Development (CEPD) yesterday released this year’s report on reforming the business environment.
The annual report outlines efforts made by the government during 2010-2011 to achieve this goal, which included launching a Web site on May 30 that allows one-stop online applications for those wishing to start a company.
Others include a one-stop center established for warehouse-building permits set up by the Taipei City Government in March and moves to simplify the corporate income tax filing procedure.
The CEPD has issued the report annually since 2009, drawing references from the Doing Business Report issued by the World Bank.
Last year, Taiwan was ranked 33rd in terms of ease of doing business among 183 economies surveyed by the World Bank, up from 61st place in 2008 and 46th place in 2009, indicating a steady rise.
Luxury tax brings in NT$159m
The Directorate-General of Customs said on Tuesday that it had levied more than NT$159 million in luxury tax on imported items as of that day following implementation of the tax in June.
According to data released by the customs agency, high-end cars were the major tax revenue source, with a total of 252 vehicles imported over the two-month period bringing in NT$156 million in tax.
The average tax levied on each high-end imported car was about NT$419,000.
The agency said six pieces of furniture were levied at about NT$63,000 each, while an Italian fur coat brought over for a month to feature in a fashion show cost NT$2,561 in tax plus a deposit of more than NT$300,000.
Spooked traders dump NT dollar
The New Taiwan dollar extended its decline against the US dollar yesterday, falling NT$0.058 to close at NT$28.938 after traders were spooked by a slower US economy that could undermine global demand and hurt Taiwan’s exports, dealers said.
Turnover totaled US$1.16 billion during the trading session, up from US$897 million the previous session.