Shares of Largan extend gains on potential of sales to Apple
Shares of Largan Precision Co. (
), which supplies smartphone camera lenses to Apple Inc., extended their momentum Wednesday morning after the stock hit a new closing high a day earlier, dealers said. The buying largely reflected expectations that Apple will upgrade its camera equipment in the next-generation iPhone and place more orders with Largan, which specializes in high-end camera lens production, they said.
As of 10:55 a.m., shares of Largan had added 1.13 percent to NT$3,595.00 (US$116), with 420,000 shares changing hands, outperforming the broader market, after closing at a record high of NT$3,555.00 on Tuesday.
Largan remains the most expensive stock in the local market.
The weighted index on the Taiwan Stock Exchange (TWSE) was down 0.06 percent at 9,385.20.
“It seems that the market has reached a consensus that Largan will continue to ride the wave of an increase in Apple’s orders, in particular after Apple unveils the next iPhones (likely in August or September),” MasterLink Securities analyst Tom Tang said.
“Largan has become one of the favorites of foreign institutional investors, and I think foreign institutional buying was behind the stock’s rise today,” Tang said.
Foreign Buyers Owned a
48.9% Largan Stake
According to the TWSE, foreign institutional investors owned a 48.9 percent stake in Largan as of Tuesday. “Foreign holdings in Largan are high because only institutional investors can afford such a high share price,” Tang said.