TAIEX closes below 7,200
The TAIEX dropped 0.77 percent yesterday, closing below the 7,200-point barrier.
The weighted index ranged between a high of 7,222.61 and a low of 7,157.90 before closing down 55.67 points at 7,166.38 on turnover of NT$55.85 billion (US$1.86 billion).
A total of 1,209 stocks closed up and 2,515 finished down, while 359 remained unchanged.
All of the market’s eight major stock categories closed down, with plastics and chemical shares suffering the steepest loss at 1.82 percent after coming under pressure from the continuing slide in international crude oil prices.
As fears of the eurozone debt crisis and financial uncertainty in the US ease, the chances that the TAIEX will fall below 7,000 are limited, Primasia Securities vice president Wang Chao-li (王兆立) said.
The market would more likely remain in a correctional mode in the short term, he said.
Airport Corp posts big revenue
Taoyuan International Airport Corp (桃園國際機場公司) posted NT$3 billion in net income last year, with half derived from duty-free sales, according to the year-old government-owned company.
The earnings, double the NT$1.5 billion forecast at the beginning of the year, came after deducting operating costs, fees paid to the Taoyuan County Government and NT$4.4 billion in rental fees from revenues of NT$12.5 billion.
Aviation revenues accounted for 45 percent of the company’s earnings, while non-aviation revenues, consisting mainly of duty-free sales, accounted for the rest, president Samuel Lin (林鵬良) said. He said Japanese tourists were at first the biggest group of buyers of duty-free goods, but they were overtaken by Chinese tourists.
The company said it hopes to develop more sources of revenue in the non-aviation sector because of the limited growth potential of aviation-related revenues, such as landing fees and fees for aircraft staying at the airport overnight.
Bank of China opens branch
Bank of China (中國銀行), the first Chinese bank to begin operations in Taiwan, will celebrate the official opening of its branch in Taipei tomorrow, with bank president Li Lihui (李禮輝) scheduled to attend.
The branch will only be allowed to conduct corporate finance during the initial stage of its operation, providing services to Taiwanese businesspeople and Chinese firms in Taiwan. The bank only takes deposits larger than NT$3 million.
Market sources believe the Chinese bank will become one of the designated clearance banks to be included in a yuan clearing agreement due to be signed by Taiwan and China.
Taipower, IPPs do not agree
State-run Taiwan Power Co (Taipower, 台電) failed to reach an agreement yesterday with four independent power providers (IPPs) in a meeting to negotiate changes in the terms of the contracts that stipulate conditions for selling electricity to Taipower.
Taipower asked the IPPs to distribute 60 percent of the profits they generate to the people of Taiwan and keep the remaining 40 percent, if their return-on-assets-ratio exceeds 3 percent.
The representatives of the IPPs did not agree with Taipower’s proposal, saying that changes in the terms of the contracts need to be approved by their boards.
NT drops against greenback
The New Taiwan dollar fell against the US dollar yesterday, declining NT$0.027 to close at NT$29.995.
Turnover totaled US$649 million during the trading session.