TAIEX slips on US fiscal fears
The TAIEX edged lower yesterday as investors remained cautious because of the looming US fiscal cliff and the recent strength of the New Taiwan dollar, which could hurt local exporters, dealers said.
The weighted index ranged between a high of 7,307.59 and a low of 7,264.02 before finishing down 25.47 points, or 0.35 percent, at 7,267.75 on turnover of NT$59.79 billion (US$2.06 billion).
A total of 1,600 stocks closed up, 2,504 finished down and 436 remained unchanged.
Yani Tseng promotes Taiwan
Taiwan’s Yani Tseng (曾雅妮), the world’s top-ranked female golfer, is appearing in a commercial promoting Taiwanese products that is being shown on international flights and in New York, according to the Taiwan External Trade Development Council (TAITRA, 外貿協會).
Part of a campaign to boost Taiwan’s exports, the commercial has been shown on a huge electronic billboard in New York’s Times Square since Oct. 1, and will run for 12 consecutive weeks, TAITRA said in a statement yesterday.
It is also being shown on the flights of several airlines, such as Lufthansa, Cathay Pacific, United Airlines, China Airlines (CAL, 中華航空) and EVA Airways (EVA, 長榮航空), TAITRA said.
Nation may miss tax target
Minister of Finance Chang Sheng-ford (張盛和) yesterday said that tax revenue may fail to hit the government’s target of NT$1.823 trillion this year, with a shortfall of about NT$10 billion.
Revenue from securities transactions taxes may cause a shortfall of NT$50 billion following sluggish trading on the local bourse, Chang said, adding that the shortfall may be offset by the contribution from consolidated income tax, which is expected to generate an additional NT$50 billion tax revenue from the government’s original target.
However, Chang said that “Taiwan did not have a fiscal cliff” like the US in a legislative question-and-answer session.
In related news, Chang said the Ministry of Finance has asked state-owned banks to inspect their staffing and businesses involved in securities investment departments within two weeks to strengthen risk management.
EVA in NT$82m aircraft sale
EVA Airways, the nation’s second-largest carrier, yesterday announced in a stock exchange filing that it has earned NT$82 million by selling a Boeing 747-400 Combi aircraft.
EVA announced in September it would sell two Boeing 747-400 Combi aircraft with a price tag of about US$16.5 million. The gains from disposing the other plane are still under review.
The sale is part of the carrier’s fleet upgrade plan and would help the airline save on costs and maintain profitability under the current sluggish performance of the aviation cargo sector and high fuel prices, the company said.
Foxconn denies riot reports
Foxconn Technology Group (富士康科技集團) yesterday denied reports that a riot broke out at a plant in southern China on Friday.
A China-based online media outlet reported earlier yesterday that more than 1,000 workers at Foxconn’s factory in Shenzhen staged a protest after a dispute occurred between a Foxconn employee and public security officers.
The company said in a statement that two policemen got into a dispute with some Foxconn employees at an apartment outside the factory area after receiving information that people were gambling in the apartment complex.
A crowd of more than 200 Foxconn workers gathered to watch the disturbance, but police authorities quickly calmed the situation down and the two sides eventually resolved the matter peacefully, the statement said.