TAIEX cautious over eurozone
The TAIEX recovered its early losses yesterday to close in positive territory after bargain hunters turned active, picking up large-cap high-tech stocks, dealers said.
However, market sentiment remained cautious as the eurozone’s financial woes continued to cast a long shadow amid uncertainties in debt-ridden Greece where political parties have been struggling to form a coalition government after the May 6 parliamentary elections, dealers said.
The benchmark index closed up 18.46 points, or 0.25 percent, at 7,395.64, after moving between 7,291.44 and 7,396.42. Turnover totaled NT$68.09 billion (US$2.31 billion) during the session.
The government said yesterday that a special task force will be established to monitor the market performance after trading volume fell to NT$46.76 billion on Monday, its lowest level in three years.
The machinery and electronics sector scored the highest gains among the eight largest sectors of the market, finishing up 0.6 percent, while the cement sector fell the most, ending down 1.6 percent.
Wistron Corp denies TV sell-off
Wistron Corp (緯創), one of Taiwan’s leading contract electronics makers, said yesterday it has no plan to dispose of its LCD TV manufacturing assets, denying media reports of a sell-off.
Wistron said the LCD TV manufacturing division has become a strategic investment for the company as it has helped the contract electronics-maker establish ties with some customers for production of high-end electronics, such as 3D TVs and home theaters.
Wistron said the LCD TV department is not only a TV assembly division, but also a research and development unit for the company.
The company’s comments came after media reports said Wistron intended to sell its LCD TV manufacturing assets to Hong Kong and Singapore listed TPV Technology Ltd (冠捷) after the division incurred losses for the first quarter of this year.
Customs’ tariffs to be reviewed
The legislature’s Finance Committee will review amendments to the Customs Import Tariff Act (海關進口稅則) today, according to a draft report that the Ministry of Finance sent to the legislature.
A total of 38 amendments were included in the draft proposal to improve the nation’s tariff rate structure and enhance industrial competitiveness, with 10 amendments adjusting tariff rates, according to the report.
Passing the amendments would lower tax revenue from tariffs by NT$148.78 million a year, but raise overall tax revenue by NT$150 million annually on the back of higher competitiveness from specific beneficial industries, such as glass and textiles.
The amendments are set to provide about 3,000 employment opportunities in these industries.
Software park breaks ground
A groundbreaking ceremony was held yesterday for the Taichung Software Park, the Ministry of Economic Affairs said.
Spread over 4.96 hectares, the facility is expected to host a cluster of industries such as data services, digital content, cloud computing and Chinese-language electronic commerce services and is expected to create more than 5,000 jobs.
Fund flight hit NT, dealers say
The New Taiwan dollar fell against the US dollar yesterday, declining NT$0.012 to close at NT$29.514 on a further fund flight out of the country, dealers said.
A drop in the euro to a four-month low against the US dollar overnight prompted many traders to cut their holdings in regional currencies, including the Taiwan dollar, they said.