TAIEX flat ahead of US figures
The TAIEX moved in a narrow range yesterday amid cautious sentiment ahead of the release of the US’ jobless report for December, dealers said.
Despite the limited fluctuations, the index managed to remain above 7,600 points as bargain hunters remained active, focusing on stocks with relatively low valuations, such as flat-panel makers, while select old economy shares, including auto firms, also attracted buying, they said.
The weighted index closed up 22.53 points, or 0.29 percent, on turnover of NT$152.73 billion (US$5.16 billion).
Mobile firms call for faster 4G
Taiwan Mobile Co (台灣大哥大) chairman Richard Tsai (蔡明興) said yesterday that he hopes the National Communications Commission (NCC) speeds up the release of the fourth-generation (4G) wireless communications license, originally scheduled for 2015, to June next year.
That means the three current third-generation (3G) telecommunications operators, including Taiwan Mobile, may bring forward a scheduled 4G commercial run to the first half of 2014, Tsai added.
“Advancing the issuance of 4G wireless communications licenses is a global trend amid a faster-than-expected growth of mobile data service,” Tsai told reporters.
In addition, Taiwan Mobile, the nation’s No. 2 telecoms operator, would also accelerate construction of base stations this year to satisfy consumers’ demand for bandwidth, Tsai said.
Ministry mulls windfall tax
Minister of Finance-designate Christina Liu (劉憶如) said yesterday that the ministry would strengthen policy research on the windfall tax, which is a tax on certain industries or people experiencing above-average profits, to see if the nation should increase tax revenues in this way.
President Ma Ying-jeou (馬英九), who met with Liu yesterday afternoon to discuss the direction of future taxation policy, has approved the idea, Liu added.
Currently, Taiwan levies a 20 percent opportunity tax on lottery winners.
Liu also said the ministry should launch a fiscal reform committee, or taxation reform committee, to gain a better understanding from all perspectives before addressing tax issues.
LED industry to grow by 2014
The LED industry should see growth by 2014 because of the increasing output value of the global LED sector, with the market penetration rate expected to reach more than 10 percent, according to a local industry association.
New policies introduced this year that banned production and import of incandescent light bulbs in Japan and some European countries were one reason for the optimistic outlook in the years ahead, the Photonics Industry and Technology Development Association (PIDA, 光電科技工業協進會) said on Thursday.
The high price of LED bulbs was a key factor in the current low market penetration rate, which stands at about 3 percent worldwide, the PIDA added.
NT dollar up on foreign funds
The New Taiwan dollar gained yesterday as foreign funds increased holdings of the nation’s assets on optimism the global economy is recovering.
The local currency had the biggest five-day rally since January last year after overseas investors bought US$1.1 billion more Taiwan stocks than they sold this week, taking net purchases for the year to US$2.1 billion.
The Taiwan dollar strengthened 1.5 percent this week to NT$29.545 against its US counterpart, according to Taipei Forex Inc. The currency rose NT$0.05 yesterday. Turnover was US$834 million.