TSMC's market cap continues record upswing after June sales report
Taipei, July 13 (CNA) The market capitalization of Taiwan Semiconductor Manufacturing Co. (TSMC) continued its rise on the stock market Monday, after the company's record monthly sales report for June.
Shares of TSMC, the most heavily weighted stock on the Taiwan Stock Exchange (TWSE), rose 1.72 percent to close at the day's high of NT$354.50 (US$12.03), vaulting the stock's market cap past Friday's record NT$9.03 trillion to a new high of NT$9.19 trillion.
Soon after the equity market opened, TSMC shares again attracted buying, as investors were motivated by the strong June sales report released Friday by the company, the world's largest contract chipmaker.
In a statement Friday, TSMC reported consolidated sales of NT$120.88 billion in June, up 28.8 percent from a month earlier and 40.8 percent from a year earlier. TSMC's second quarter sales totaled NT$310.70 billion, an increase of 0.32 percent from the first quarter, according to the report.
With the strong June sales, TSMC achieved its second-quarter sales guidance of between NT$303 billion and NT$312 billion, after a 15.4 percent monthly increase in April and despite a 2.3 percent month-on-month drop in May.
Dealers said TSMC's sales rebounded in June as its clients began rebuilding their inventories in preparation for higher demand for products with emerging technologies.
On the local main board, TSMC remains a favorite of foreign institutional investors, who bought a net 111.71 million of the company's shares in the nine trading sessions prior to Monday, helping to boost the stock about 11.7 percent.
According to market analysts, TSMC is expected to see a 3-5 percent sequential increase in sales in the third quarter on the back of strong global demand for 5G applications and high performance computing devices.
The company's revenue is likely to grow further in the fourth quarter due to solid demand for its high-end technologies, which will help realize its forecast of a 14-19 percent annual increase in sales for 2020.
TSMC is scheduled to give its second-quarter results and third-quarter guidance at an investor conference Thursday.
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