SAMSUNG, OTHER ASIAN TECH SHARES TUMBLE ON THE FUTURE EARNINGS WORRIES
Samsung Electronics and- alternative Asian record bonds tumbled upon Friday upon fears the sputtering tellurian manage to buy will tighten demand- for computers and- TVs and- harm gain during thinly slice and- row makers for the rest of the year.
Investors, who had approaching Japan’s trembler 3 months ago to lift prices of mental recall chips and- prosaic screens, dumped shares of tech firms in South Korea, Taiwan and- Japan.
The tech zone serves as the bellwether for tellurian consumer demand- and- the opinion has been soured by the debt predicament in Europe and- indolent U.S. pursuit and- housing markets.
“The tech movement appears to be dead,” pronounced Cha Kyung-jin, the account manger during Golden Bridge Asset Management, which owns Samsung shares. “Expectations have been lowered upon the tellurian manage to buy and- tech gain in the second half.”
Shares in Samsung Electronics, the world’s greatest record organisation by revenue, slid 3.4 percent in the greatest every day decrease in 3 months.
Hynix Semiconductor, the world’s No.2 mental recall chipmaker, skidded 6.1 percent, and- LG Display, which vies for the world’s tip flat-screen builder pretension with Samsung, tumbled 6.8 percent, among lowered gain expectations.
In Japan, Elpida Memory mislaid 2.8 percent and- Taiwan’s Nanya Technology forsaken 7 percent, whilst AU Optronics and- Chimei Innolux mislaid 5.1 percent and- 4.1 percent, respectively.
“There have been concerns which tech firms might see small gain liberation in the second half after posting bad second-quarter earnings. There is traditionally tall demand- in the second half, though seasonality might be diseased this year because- of macroeconomic difficulties,” pronounced Park Jong-min, the account physical education instructor during ING Investment Management.
“Businesses have been demure to set up up register because- of macroeconomic uncertainties and- as they have already piled up components after the Mar eleven upheaval upon fears of the tools shortage,” he said. ING owns shares of Samsung and- Hynix.
The informal MSCI record index mislaid 1.8 percent upon Friday. The U.S. Philadelphia Semiconductor Index strew 1.1 percent upon Thursday, and- has depressed 16.5 percent in 4 months.
LOWERED EARNINGS OUTLOOK
Global Personal Computer shipments, which in new years grew by stand in digits annually exclusive 2009 and- offer as the pass expansion motorist of the mental recall thinly slice industry, have been set to grow by usually 5 percent this year as consumers opt for renouned tablets and- smartphones.
Samsung, which is set to refurbish the marketplace with the second-quarter gain estimates in the initial week of July, declined to criticism upon the stream quarter’s results.
“Second-quarter is the typically diseased deteriorate though the marketplace condition was somewhat worse than common because- narrowing which most people had approaching after the upheaval didn’t unequivocally occur due to diseased demand-,” pronounced the comparison senior manager during the vital Korean wiring firm. The central declined to be declared because- he was not certified to verbalise to the media.
Analysts’ expectations for the liberation in the loss-making prosaic shade businesses of Samsung and- LG Display have right away been pushed behind from the second entertain as TV sales sojourn weak.
Samsung’ second-quarter handling distinction is foresee to be around 4 trillion won ($3.66 billion), Thomson Reuters I/B/E/S interpretation showed, compared to 5 trillion won the year ago.
Earnings expectations were being downgraded further.
“We not long ago lowered the second-quarter handling distinction foresee upon Samsung Electronics to 3.6 trillion won,” pronounced Jin Seong-hye, an researcher during Hyundai Securities.
Hynix is seen posting the 553 billion won handling distinction for the entertain finale in June, according to Thomson Reuters I/B/E/S, compared with the 1 trillion won handling distinction the year earlier.
Yunico 18 Jun, 2011--
Source: http://www.digdod.com/samsung-other-asian-tech-shares-tumble-on-the-future-earnings-worries-1033974.html
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