TWSE Surges 1.22% with Help from iPhone Suppliers

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copyright Ken Teegardin, www.SeniorLiving.Org

The Taiwan Stock Exchange (TWSE) surged more than 125 points on Tuesday to close at 10,415.57 with market turnover of NT$108.28 billion (US$2.55 billion).

The market was boosted by speculation on Apple suppliers such as Taiwan Semiconductor Manufacturing Co. (TSMC) and iPhone assembler Hon Hai Precision Industry Co., Ltd. Both companies announced flagging sales on Monday and rebounded significantly today, with TSMC surging 2.91% and Hon Hai up 2.6%. TSMC closed shy of its 52-week high set on June 19.

Hon Hai had posted its lowest quarterly sales figure in three years, while TSMC, which produces chips for the iPhone, missed estimates, according to Bloomberg. TSMC’s June sales, however, increased 3.4% year-on-year.

ASUSTeK, Acer, and Pegatron saw June sales decline 8.3%, 14.3%, and 13.5% year-on-year respectively. Despite the sales figures, shares in ASUSTeK, Acer, and Pegatron rose 0.5%, 0.1%, and 1.9%, respectively, today. Meanwhile, Quanta Computer’s June sales surged 32.3% year-on-year. Quanta’s shares closed up 1.11% on the day.

Other tech stocks in Taiwan had more positive news that drove the market higher, including Advanced Semiconductor Engineering Inc. (ASE), which saw June sales grow 6% year-on-year to NT$23.08 billion (US$755.75 million).

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