Home > News > Industry News > Taiwan LCD shares rise on stabilising panel prices

Taiwan LCD shares rise on stabilising panel prices

Post Time:Jan 05,2009Classify:Industry NewsView:372

Shares of Taiwan's major LCD makers, including AU (2409.TW) and Chi Mei (3009.TW), jumped sharply on Monday after a research firm said panel prices would stablise this month after recent falls. Around two hours into trade, shares of AU Optronics Corp (AUO.N) and Chi Mei Optoelectronics Corp, the island's two biggest LCD makers and the market's two most active issues by volume, rose 6.7 percent and 4.6 percent, respectively.

Smaller rival Chunghwa Picture Tubes (2475.TW) also rose 3.3 percent, lifting the optoelectronics sub-index .TOPI up 5 percent and the main TAIEX index 2.4 percent higher.

DisplaySearch said last Wednesday before a New Year break that notebook PC and LCD TV panel prices are expected to be flat in January, stopping the trend of falling prices seen for the past six months.

Some panel makers have raised LCD monitor prices for January and panel suppliers and their customers are agreeing to increase the panel price of the 19-inch wide and 18.5-inch wide LCD monitor panels by $3-5, it said, without identifying companies.

Taiwan's stock markets were closed last Thursday and Friday for the New Year holiday.

In December, AU and Chi Mei slashed their October-December quarter guidance amid a slowing global economy that has hurt demand for computers, cellphones and flat-screen TVs.

AU expected fourth-quarter average selling prices to decline about 25 percent from the third quarter, and Chi Mei expected its fourth-quarter shipments to decline by 35-40 percent from the previous three months.

Chi Mei has set its 2009 capital expenditure forecast at T$35 billion ($1.1 billion), lower than its 2008 budget of T$100 billion. (US$1=T$33)

Source: ReutersAuthor: shangyi

Hot News