Taipei--Shares of Hon Hai Precision Industry Co. (??), an assembler of iPhones and iPads for Apple Inc., hit NT$100 (US$3.33) for the first time in more than two years after Apple shares hit a record high overnight, dealers said.
Buying in Hon Hai, the world's largest contract electronics maker, also reflected optimism over the manufacturing giant's future after the company confirmed it is in talks with U.S. authorities on investing in the United States, they said.
Hon Hai shares closed up 1.21 percent to close at NT$100.00, off a high of NT$100.50, with 59.04 million shares changing hands. The stock ended at the NT$100 level for the first time since Sept. 25, 2014, when its shares also closed at NT$100.00.
Hon Hai and other large-cap high-tech stocks, in particular contract chip maker Taiwan Semiconductor Manufacturing Co. (TSMC,???), attracted buying on Tuesday to push up the broader market's weighted index to breach 9,900 points.
Soon after the market opened, investors bought into Hon Hai shares after Apple shares hit an all-time high on the Nasdaq, rising more than 2 percent to close at US$146.58 ahead of the release of its earnings report for the January-March period.
The market widely expects Apple to report that its sales will rise 5-6 percent from a quarter earlier even though iPhone sales have slowed.
More importantly, dealers said, the market is upbeat about sales of the next generation of iPhones on the 10th anniversary of the device, which could boost Hon Hai's shipments in the second half of this year, in particular in the fourth quarter.
Apple accounts for about 40 percent of Hon Hai's total revenue.
In addition, investors rushed to pick up Hon Hai after the company's chairman, Terry Gou (???), visited the White House twice in April to discuss possible investments in the United States.
Hon Hai, known primarily as Foxconn outside Taiwan, confirmed over the weekend that it has been in talks with the U.S. government on investing in the country. White House spokeswoman Natalie Strom said on Saturday that Gou met briefly with U.S. President Donald Trump.
Dealers said many investors saw Hon Hai's plan to invest in the U.S. as a positive lead because it could help the company secure orders from its U.S. clients, including Apple, at a time when Trump is advocating an "America First" approach.
In late January, Gou said Hon Hai could invest in a flat panel plant in the U.S. He said that if clients such as Apple were willing to join with Hon Hai in the project, investment in the plant could top US$7 billion.
Source: Focus Taiwan News Channel