Wed, May 03, 2017 - Page 11 News List

Hon Hai shares return to NT$100

Staff writer, with CNA

Shares of Hon Hai Precision Industry Co (鴻海精密), an assembler of iPhones and iPads for Apple Inc, hit NT$100 for the first time in more than two years after Apple shares hit a record high overnight, dealers said.

Buying in Hon Hai, the world’s largest contract electronics maker, also reflected optimism over the manufacturing giant’s future after the company confirmed it is in talks with US authorities to invest in the US, the dealers said.

Hon Hai shares closed up 1.21 percent at NT$100.00, off a high of NT$100.50, with 59.04 million shares changing hands. The stock ended at the NT$100 level for the first time since Sept. 25, 2014, when its shares also closed at NT$100.00.

Hon Hai and other large-cap high-tech stocks, in particular contract chipmaker Taiwan Semiconductor Manufacturing Co (台積電), attracted buying yesterday, pushing up the broader market’s weighted index to breach 9,900 points.

Soon after the market opened, investors bought Hon Hai shares after Apple shares hit an all-time high on the NASDAQ, rising more than 2 percent to close at US$146.58 ahead of the release of its earnings report for the January-to-March period.

The market widely expects Apple to report that its sales rose 5 to 6 percent from a quarter earlier, even though iPhone sales have slowed.

More importantly, the market is upbeat about sales of the next-generation of iPhones on the 10th anniversary of the device, which could boost Hon Hai’s shipments in the second half of this year, in particular in the fourth quarter, dealers said.

Apple accounts for about 40 percent of Hon Hai’s total revenue.

In addition, investors rushed to pick up Hon Hai, known primarily as Foxconn Technology Group (富士康) outside Taiwan, after the company’s chairman, Terry Gou (郭台銘), last month visited the White House twice to discuss possible investments in the US.

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