Tue, Jul 24, 2012 - Page 14 News List

[ BUSINESS BRIEFS ]

Staff writer, with Agencies

TAIEX plunges on Spain fears

The TAIEX plunged 1.90 percent yesterday, hit by Friday’s losses on Wall Street and European markets, and renewed fears that Spain may require a full-blown bailout.

Share prices and turnover were also dragged down by concerns over a proposed capital gains tax on stock transactions, which will be reviewed at an extraordinary legislative session beginning tomorrow.

The weighted index ranged between a high of 7,105.99 and a low of 6,996.18, before closing down 135.95 points at 7,028.73, on turnover of NT$53.24 billion (US$1.77 billion).

The day’s low was the first time the index had fallen below 7,000 points since June 8.

A total of 997 stocks closed up and 2,949 finished down, while 209 remained unchanged.

TAIEX volumes hit 2006 low

The average daily trading volume on Taiwan’s stock market this year was NT$89.56 billion as of July 20, the lowest level since 2006, according to statistics released on Sunday by Taiwan Stock Exchange Corp (TWSE, 台灣證交所).

In the past five years, the daily turnover has averaged more than NT$100 billion, the report said.

Even during the global financial crisis in 2008, the average daily trading volume stood at NT$104.881 billion, the report said.

The Taiwan Securities Association (證券公會) said the TAIEX had dropped by 1,043 points, or 12.77 percent, since the Ministry of Finance proposed a capital gains tax on securities transactions in March, while the average daily trading volume had shrunk to NT$71.6 billion.

Five firms in world’s top 500

Five Taiwan-based companies were ranked among the 500 largest in the world, with Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s biggest contract chipmaker, advancing to the top 100, according to a report released by the Financial Times on Friday last week.

The five companies are TSMC (82nd), Hon Hai Precision Industry Co (鴻海精密, 174th), Formosa Petrochemical Corp (台塑石化, 280th), Chunghwa Telecom Co (中華電信, 364th) and Formosa Plastics Corp (台塑, 498th).

Meanwhile, Taiwanese smartphone maker HTC Corp (宏達電), which ranked 273rd last year, fell from the FT-500 list this year. Nan Ya Plastics Corp (南亞塑膠) and Formosa Chemicals & Fibre Corp (台灣化纖), which placed 399th and 432nd respectively last year, also dropped off the list.

Bidding open for projects

The Ministry of Finance yesterday announced a bid for 12 land development projects on Tuesday next week, with several projects in southern Taiwan likely to be successful.

The winning bidders will be able to develop the land by granting “superficies” rights, the ministry’s National Property Administration said in a press release.

The base prices for the superficies right of these parcels of land would be set at between 30 percent and 50 percent of their market price to attract more bidders, compared with between 50 percent and 70 percent recorded in the past two years, the release said.

The ministry is set to announce details of another 10 land development projects set to be open for bidding in the near future, most of them for commercial use.

NT falls against greenback

The New Taiwan dollar lost ground against the US dollar yesterday, declining NT$0.1 to close at NT$30.095.

Turnover totaled US$1.02 billion during the trading session.

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