United Microelectronics Corp (UMC, 聯電), the nation’s second-largest contract chipmaker, was the stock that generated the most interest from foreign institutional investors last week, the Taiwan Stock Exchange said yesterday.
According to data compiled by the exchange, foreign institutional investors bought a net 391.18 million UMC shares last week, the most of any stock on the market.
Ranking behind UMC were flat-panel makers AU Optronics Corp (AUO, 友達光電) and Innolux Corp (群創), which were the targets of foreign investor net buys of 198.07 million shares and 65.55 million shares respectively.
The aggressive buying pushed UMC shares up 15 percent during the week, while AUO shares rose 8.17 percent and Innolux shares gained 4.26 percent.
The strong foreign institutional interest in UMC largely reflected its relatively low valuation when compared with Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker.
Before the strong showing last week, UMC shares had gained 12.28 percent since the beginning of the year, while TSMC, the most heavily weighted stock on the local market, had added almost 20 percent.
Hon Hai Precision Industry Co (鴻海精密) saw the biggest sell-off by foreign institutional investors, who sold a net 45.98 million Hon Hai shares last week, followed by TSMC with 21.60 million shares and Pacific Construction Co (太平洋建設) with 9.28 million shares.
Foreign investors bought a net NT$20.45 billion (US$672 million) of shares during the week, bringing their net buy for the first half of the year to NT$266.27 billion, exchange data showed.
In the first half of the year, the weighted index on the main board rose 1,141 points, or 12.3 percent.
NOT ALL GOOD: Analysts warned that other data for last month might be less rosy due to the virus and analysts expect the PMI to contract again next month Chinese factory activity saw surprise growth last month as businesses went back to work following a lengthy shutdown, but analysts said that the economy faces a challenging recovery as external demand has been devastated by the COVID-19 pandemic, while the World Bank said that growth could screech to a halt. China is slowly returning to life after months of tough restrictions aimed at containing the virus, which put millions of people into virtual house arrest and brought economic activity to a near standstill. The strict measures saw a closely watched gauge of manufacturing plunge to its lowest level on record in February,
The output of the global smartphone industry this year is to contract by 7.8 percent on an annual basis as the COVID-19 pandemic ushers in a global recession, Taipei-based market researcher TrendForce Corp (集邦科技) said in a report on Monday. The global production of smartphones is expected to fall to 1.29 billion units, as the pandemic dampens demand for consumer electronics, leading to a decline in shipments across Europe and North America, TrendForce said. With consumers delaying smartphone purchases and thereby lengthening the device replacement cycle, overall prices would suffer a setback that is expected to negatively affect the profitability of smartphone
ELECTRONICS Lite-On delays sale of unit Lite-On Technology Corp (光寶科技) yesterday said it would postpone the sale of its solid-state drives (SSD) business to Kioxia Holdings Corp, formerly known as Toshiba Memory Holdings Corp, due to disruptions amid the COVID-19 pandemic. Last year, the Taiwan-based electronics components supplier struck the deal with the Japanese firm, agreeing to sell the unit for US$165 million. Citing unfinished integration work due to the pandemic, Lite-On has deferred today’s closing date until further notice, adding that the delay would not have a negative effect on the unit’s operations. AUTO PARTS Hiroca approves dividend Automotive interior parts supplier Hiroca
ALL ABOUT STRATEGY: The company is optimistic, saying that its gross margin should increase year-on-year, but it is scaling back on its plans to expand capacity Quang Viet Enterprise Co (QVE, 廣越), which makes down jackets and garments for sportswear and outdoor brands including Adidas AG, yesterday said that revenue might drop 5 to 10 percent annually this year as some customers trimmed orders in response to the COVID-19 pandemic. That would mark its first revenue decline since 2016. Quang Viet posted record-high revenue of NT$16.26 billion (US$537.45 million) last year, up 22 percent from 2018. Down jackets made up 40 percent of it revenue last year. North Face Inc and Patagonia Inc are this year likely to reduce orders by 20 to 30 percent from a