TAIEX drops 1.74 percent
Taiwanese shares closed 1.74 percent lower on profit-taking on a thin trading yesterday, dealers said.
The weighted index fell 122.42 points to the day’s low of 6,918.48 on turnover of NT$74.07 billion (US$2.36 billion).
“Investors chose to sell their stocks, indicating that they were short of confidence,” said Young Wang of Yuanta Securities Investment Consulting (元大投顧).
Concerns about an investigation into money-laundering allegations implicating former president Chen Shui-bian (陳水扁) and his family also weighed on sentiment.
The Ministry of Finance said on Wednesday it is investigating the former government’s financial reforms, particularly controversial mergers in the overcrowded domestic banking sector.
The probe came as Chen, who initiated the much-touted reforms, is being investigated in a case of suspected money-laundering that has also ensnared his family.
Executive payouts announced
Peter Chou (周永明), chief executive of handset maker High Tech Computer Corp (HTC, 宏達電), will obtain NT$163 million in executive pay as a board member, based on the company’s net income last year — the highest among local electronics companies — the Chinese-language Commercial Times reported yesterday.
Rick Tsai (蔡力行), chief executive of Taiwan Semiconductor Manufacturing Co (台積電), the world’s largest contract chipmaker, will receive NT$156 million.
Wang Jeng-tang (王振堂), chairman of Acer Inc (宏電), the world’s third-biggest PC maker, came third, with NT$127 million.
Based on new tax rules, company executive pay and employee bonuses will be taxed starting next year.
CABEI to issue bonds
The Central American Bank for Economic Integration (CABEI) is to launch its fifth bond issue in Taiwan to raise funds for economic development in Central America, the central bank said yesterday.
CABEI has applied to issue NT-dollar bonds worth NT$7 billion and the central bank gave it permission to issue the bonds before September 2010, the central bank said in a statement.
Since 1997, CABEI has launched four NT-dollar bond issues in Taiwan, worth NT$17.8 billion.
Founded in 1960 in Tegucigalpa, Honduras, the development bank is Central America’s principal multilateral bank and financial arm. It has five founding members — Guatemala, Honduras, El Salvador, Nicaragua and Costa Rica — as well as seven non-regional members and one beneficiary member.
Taiwan, which has diplomatic ties with five Central American countries, joined CABEI as a non-regional member in 1992.
Bionet, HealthBanks fined
The nation’s two leading cord blood bank companies Bionet Corp (訊聯生物科技) and HealthBanks Biotech Co (生寶生物科技) were each fined NT$1 million by the Fair Trade Commission (FTC) on Wednesday for false advertising.
FTC commissioner Chou Ya-shu (周雅淑) said Bionet falsely claimed in its advertisement, endorsed by well-know TV hostess Little S (小S), that the company’s research and development and related techniques were backed by the Ministry of Economic Affairs, which the commission said was misleading.
Chou said that both companies claimed their product was superior to their rival’s, but had no evidence to back their claims. As a result, the commission ruled that they were in violation of the Fair Trade Law.
NT slightly up on greenback
The NT dollar rose NT$0.001 to trade at NT$30.389 against the greenback yesterday on turnover of US$978 million.
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