TAIEX down despite tech surge
The TAIEX fell into negative territory yesterday, closing below the 7,100 point mark, on futures-led selling, dealers said.
However, selected high-priced electronics such as smartphone vendor HTC Corp (宏達電), and handheld camera lens supplier Largan Precision Co (大立光), staged a technical rebound, lending some support to the broader market, they added.
The weighted index closed down 57.28 points, or 0.8 percent, at 7,088.49, after moving between 7,061.87 and 7,169.40. Turnover during the session totaled NT$55.51 billion (US$1.90 billion).
Dunkin’ Donuts denies closures
The local operator of Dunkin’ Donuts yesterday denied reports that it plans to close all outlets of the US chain in Taiwan next year.
Wang Chih-hua (王志華), vice president of Mercuries & Associates Ltd (三商行), which operates Dunkin’ Donuts in Taiwan, said that only one of the 19 Dunkin’ Donuts shops in Taiwan would be closed by the end of this year. Any issue regarding the closure of Dunkin’ Donuts will involve the parent company in the US and no such discussions have taken place, Wang said.
A local newspaper reported yesterday that Mercuries and Associates would begin closing all Dunkin’ Donuts outlets in Taiwan next month, citing falling revenues and high costs.
Local investment in China down
Investment in China by Taiwanese companies dropped for the ninth consecutive month last month, with an annual decrease of 22 percent recorded in the first 10 months of this year, according to the latest statistics compiled by the Investment Commission.
Last month, the government approved US$590.64 million in China-bound investment, down 6 percent from the same month last year, the commission said on Tuesday.
Investments approved during the January-October period dropped 22.66 percent year-on-year to US$8.64 billion.
Investment by Chinese companies in Taiwan rose 309.42 percent to US$156.74 million during the first 10 months, the statistics showed.
Taiwan-German tax deal due
An agreement signed between Taiwan and Germany last year to avoid double taxation on incomes and capital gains and prevent tax evasion will go into effect at the beginning of next year, the Ministry of Foreign Affairs said in a statement on Tuesday.
The agreement, signed on Dec. 28 last year, was processed this year and the two sides notified each in July that the required procedures had been completed, the ministry said.
The agreement is now set to take effect Jan. 1, it added.
Foreign stock rules relaxed
Taiwan Stock Exchange Corp (TWSE, 台灣證交所) said on Tuesday its board of directors has approved a proposal to relax the requirements for applications for primary stock listing in Taiwan by foreign issuers.
A TWSE official said that foreign issuers with a net worth of NT$600 million or above and a capital of NT$400 million or above will be eligible to apply for listing on the Taiwan Stock Exchange. The revision still awaits approval by the TWSE’s higher authority before taking effect.
Currently, the listing standard is mainly based on capital stock. An issuer has to have an equity of NT$600 million or above to qualify for listing.
NT loses ground on greenback
The New Taiwan dollar lost ground against the US dollar yesterday, declining NT$0.034 to close at NT$29.179.
Turnover totaled about US$544 million during the trading session.