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Solar energy stocks rise on upbeat assessments, PV Taiwan trade show

Solar energy stocks rise on upbeat assessments, PV Taiwan trade show

Taipei, Oct. 14 (CNA) Taiwan's solar energy stocks moved higher Wednesday morning after several heavyweights in the sector gave an upbeat outlook for 2016, which prompted bargain hunters to pick these stocks after a recent sell-off, dealers said. The current buying also reflected optimism toward business opportunities the three-day PV Taiwan 2015 trade show will create, which kicked off in Taipei Wednesday, they said. As of 11:22 a.m., shares of solar cell maker Motech Industries Inc. (??) had added 1.74 percent to NT$40.85 (US$1.25), and shares of silicon wafer material developer Sino-American Silicon Products Inc. (???) had risen 4.86 percent to NT$38.80. Shares of solar cell maker Neo Solar Power Corp. (???) had risen 3.02 percent to NT$20.45, and shares of solar energy conductive paste supplier Giga Solar Materials Corp. (??) had added 3.46 percent to NT$568.00. Giga Solar is the most expensive solar energy stock in the local market. The weighted index on the Taiwan Stock Exchange was down 0.28 percent at 8,544.18. "At a time when the broader market moved in consolidation mode, investors tended to seek individual stocks with positive leads," Hua Nan Securities analyst Henry Miao. "After several solar energy firms expressed optimism yesterday, investors rushed to buy into the sector today." "The local solar energy sector had been in the doldrums in recent sessions so I think the buying largely came from bargain hunters who wanted to take advantage of these stocks' relatively low valuations," Miao said. In a news conference held Tuesday before the PV Taiwan 2015 trade show began, Giga Solar President Huang Wen-jui (???) said that global demand for solar energy products has been on the rise, in particular from China, the United States and India. Huang said that demand from these particular markets is expected to grow 20 percent next year. According to a market estimate released by SolarPower Europe, solar energy equipment installation is expected to grow to 58GW in 2015 from about 40GW recorded in 2014, and the growth will continue over the next few years. Motech Chief Executive Officer Chang Peng-heng (???) said that supply has exceeded demand in the global solar energy industry by 10 percent in 2015, but the gap is expected to narrow down to 5 percent in 2016, indicating that the market is tilting toward a balance between supply and demand. "According to my brokerage's research, the global solar energy market has been improving as product prices have showed signs of stabilizing," Miao said. "The sector's sales reports for September were evidence of the improvement." Among the firms which enjoyed a month-on-month increase in sales in September, Sino-American posted NT$NT$2.47 billion in consolidated sales, up 1.3 percent from a month earlier, and the September figure was the highest in three months. Giga Solar posted NT$1.59 billion in consolidated sales for September, up 7.26 percent from a month earlier, and the month was the sixth consecutive month for the company to report a high in monthly sales. Dealers said that the on-going PV Taiwan 2015 trade show has also drawn attention from investors and led them to place funds in the local solar energy sector. The annual trade exhibition is currently held in the Taipei Nangang Exhibition Center. A total of 126 exhibitors from Taiwan and abroad have participated in the event to display their innovations at 365 booths. (By Jackson Chang and Frances Huang)


Updated : 2021-09-26 07:39 GMT+08:00