TAIEX rallies after uncertainty
The TAIEX rallied yesterday as uncertainty over a capital gains tax lifted with the Ministry of Finance’s proposal to levy a 20 percent tax on retail investors who make more than NT$3 million (US$101,700) in stock gains in a year, dealers said.
Buying in local shares was also boosted by a rally on Wall Street overnight.
This came as concerns over the debt problems in the eurozone eased to some extent on a decline in bond yields in Spain and Italy, they said.
The benchmark index closed up 125.35 points, or 1.64 percent, at the day’s high of 7,788.27, off an early low of 7,733.18. Turnover during the session totaled NT$86.75 billion.
Taipower cancels staff discounts
State-owned Taiwan Power Co (Taipower, 台電) said yesterday that it was canceling preferential electricity prices for its staff from May 1.
The announcement came amid recent public outcry over electricity price hikes set to take effect in the middle of next month.
In response to the criticism, the company conducted a survey among its staff and made the decision after most of them agreed to the cancellation of their discounts, Taipower spokesman Roger Lee (李鴻洲) said at a news conference.
Each Taipower employee is currently given a monthly discount of about NT$82 on their electricity bill, Lee said.
This amounts to a total of about NT$27 million a year for all 2,700 Taipower staff, he added.
ProMOS to roll over loans
Local memorychip maker ProMOS Technologies Inc (茂德科技) yesterday said it has obtained approval from creditor banks to roll over NT$57 billion of syndicated loans for a six-month period.
The debt-ridden chipmaker said that creditor banks, led by Taiwan Cooperative Bank (合作金庫銀行), also approved an adjustment of interest rates on the loans, according to a company filing to the Taiwan Stock Exchange.
Microsoft reshuffles executives
Microsoft Corp, the world’s biggest software maker, reshuffled top executives at its European and Chinese operations, after the company said Simon Leung (梁念堅) quit as chief executive of the greater China region.
Leung is leaving for “personal and family reasons,” and will be replaced by Ralph Haupter, currently vice president at Microsoft Germany, the company said in a statement yesterday.
Microsoft UK managing director Gordon Frazer will take over as chief operating officer for greater China from Michel van der Bel, who is moving into Frazer’s UK role, it said.
Leung will leave his position at the end of the month, and will serve as an adviser until August, Charles Shen (沈激), a Microsoft spokesman in Beijing, said by telephone yesterday.
The greater China region covers Taiwan, China and Hong Kong, Microsoft said.
NT dollar rises slightly
The New Taiwan dollar gained against the US dollar yesterday, adding NT$0.022 to close at NT$29.528 as a rebound staged by the local bourse raised demand for the local currency, dealers said.
The NT dollar was also boosted by the strength of most of the currencies in the region amid hopes that the US Federal Reserve will continue to keep interest rates low, a move expected to further lift non-US dollar currencies on spill-over effects from ample liquidity in the US market, the dealers said.
Turnover totaled US$642 million during the trading session.