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Shares of IC inspection tool supplier play catch-up with Largan

Shares of IC inspection tool supplier play catch-up with Largan

Taipei, May 22 (CNA) Shares of Hermes Microvision Inc., one of Taiwan's leading semiconductor inspection tool and equipment suppliers, extended their gains Wednesday morning as they played catch-up with shares of Largan Precision Co., dealers said. As Largan shares pulled back after rising sharply a day earlier, investors moved their funds to Hermes shares, which had lagged behind the smartphone camera lens maker in the race to see which stock would be the highest-priced on Taiwan's markets, they said. As of 11:37 a.m., shares of Hermes had added 1.04 percent to NT$972.00 (US$32.61), while shares of Largan had lost 1.33 percent to NT$968.00. The index on the over-the-counter (OTC) market, where Hermes shares are traded, was up 0.25 percent at 120.68, while the benchmark weighted index on the Taiwan Stock Exchange, where Largan shares are listed, was up 0.20 percent at 8,399.93. On Tuesday, Hermes shares rose 2.89 percent, while Largan shares ended up 3.81 percent. "In recent trading sessions, Largan and Hermes have competed against each other for the title of 'most expensive stock' in Taiwan," MasterLink Securities analyst Tom Tang said. "For the moment, Hermes grasped the title again." "With interest in Largan shares fading to some extent this morning, I suspect institutional investors, including foreign brokerages and local mutual funds, are moving their funds to Hermes shares," Tang said. Largan shares rose more than 40 percent between April 25, when it reported better-than-expected results for the first quarter, and Tuesday, while shares of Hermes were up about 17 percent during the same period. "Compared with Largan, Hermes is a laggard. That's why the stock is benefiting from the move to 'catch up.' The market is still awash in liquidity, and investors are eager to park their funds in targets, like Hermes," Tang said. "The gains posted by Hermes shares also indicated that the stock remains technically stable, as it is a relatively young listing in the market compared with Largan," Tang said. Hermes shares have been listed on the OTC market since May 2012. Largan shares have been listed on the main board since March 2002. Tang said the interest in Hermes shares also reflected expectations of a stronger bottom line after Taiwan Semiconductor Manufacturing Co., one of the IC inspection tool supplier's largest customers, said it would raise its capital expenditure in 2013. TSMC said on April 18 that it would increase its spending on equipment and plants during the year to US$9.5 billion-US$10 billion from the previously planned US$9 billion. Tang said his brokerage expects Hermes to post NT$33.86 in earnings per share for 2013, up from NT$23.34 recorded in 2012, which was the highest in the company's history. "But I am worried about the strong technical resistance ahead of the NT$1,000 mark Hermes shares are moving toward," Tang said. "Look at Largan. The stock is now facing downward pressure after approaching the NT$1,000 mark." (By Maranda Hsu and Frances Huang)


Updated : 2021-04-21 01:52 GMT+08:00