The Ministry of Finance, the Financial Supervisory Commission and the National Development Council on Tuesday night reached a consensus on extending the transaction tax cut for day trading for two or three years after it expires at the end of this year, local media reported yesterday.
The three agencies will report the conclusion of their meeting to the Executive Yuan by the end of this month to finalize the extension plan, the reports said.
The government cut the tax for day trading from 0.003 percent to 0.0015 percent in 2017. With the tax cut set to come to an end at the end of this year, concern has risen that the impending end of the incentive led many day traders and investors in old economy stocks to dump their holdings in the past few days.
Photo: Kelson Wang, Taipei Times
However, investors seem optimistic about the tax cut extension, leading to buying yesterday of old economy stocks, including shipping and raw material stocks, Mega International Investment Services Corp (兆豐國際投顧) analyst Alex Huang (黃國偉) said.
The bellwether electronics sector yesterday also reversed earlier losses, giving an additional boost to the broader market, Huang said.
Taiwanese shares yesterday recovered earlier heavy losses caused by volatility on US markets overnight to end a nine-session losing streak and finish the day above the 16,800-point mark, as bargain hunters took advantage of the initial downturn.
The TAIEX closed up 164.91 points, or 0.99 percent, at 16,826.27. Turnover was NT$417.49 billion (US$14.99 billion), with foreign institutional investors selling a net NT$2.24 billion of shares on the main board, Taiwan Stock Exchange data showed.
“Further gains are possible before the TAIEX moves closer to the nearest technical resistance ahead of the 120-day moving average at around 16,960 points,” Huang said.
Shares in Taiwan closed at a new high yesterday, the first trading day of the new year, as contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) continued to break records amid an artificial intelligence (AI) boom, dealers said. The TAIEX closed up 386.21 points, or 1.33 percent, at 29,349.81, with turnover totaling NT$648.844 billion (US$20.65 billion). “Judging from a stronger Taiwan dollar against the US dollar, I think foreign institutional investors returned from the holidays and brought funds into the local market,” Concord Securities Co (康和證券) analyst Kerry Huang (黃志祺) said. “Foreign investors just rebuilt their positions with TSMC as their top target,
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Garment maker Makalot Industrial Co (聚陽) yesterday reported lower-than-expected fourth-quarter revenue of NT$7.93 billion (US$251.44 million), down 9.48 percent from NT$8.76 billion a year earlier. On a quarterly basis, revenue fell 10.83 percent from NT$8.89 billion, company data showed. The figure was also lower than market expectations of NT$8.05 billion, according to data compiled by Yuanta Securities Investment and Consulting Co (元大投顧), which had projected NT$8.22 billion. Makalot’s revenue this quarter would likely increase by a mid-teens percentage as the industry is entering its high season, Yuanta said. Overall, Makalot’s revenue last year totaled NT$34.43 billion, down 3.08 percent from its record NT$35.52
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