Disappointing October sales send Acer, Asustek shares lower

Taipei, Shares of Acer Inc. and Asustek Computer Inc., two of the leading PC brands in Taiwan, moved lower Monday, underperforming the broader market after the two companies reported disappointing sales for October last week, analysts said.

The fall in sales for the month largely resulted from a shortage of central processing units provided by Intel, keeping the two PC vendors from seeing their sales grow in what should be the peak season of the year for consumer electronics shipments.

The two companies were also hurt by escalating competition in the local PC market, analysts said.

Shares of Acer fell 4.93 percent to close at the day's low of NT$20.25 (US$0.66), and shares of Asustek dropped 0.65 percent to end at NT$228.00 on the Taiwan Stock Exchange (TWSE) on Monday.

The benchmark weighted index on the TWSE, the Taiex, closed 0.01 percent higher at 9,831.21, off an early low of 9,764.46.

The two stocks fell after disappointing sales reports for October released on Friday, analysts said.

In a statement Friday, Acer said it posted consolidated sales of NT$19.96 billion in October, down 12.9 percent from a month earlier and also down 11.1 percent from a year earlier.

In the first 10 months of the year, however, Acer's consolidated sales rose 3.1 percent year-on-year to NT$198.56 billion, the company said.

Asustek reported consolidated sales of NT$31.1 billion in October, down 22.7 percent from a month earlier and down 10.3 percent from a year earlier.

In the first 10 months of 2018, Asustek's consolidated sales fell 8.9 percent from a year earlier to NT$354.70 billion.

Acer encountered heavier downward pressure than Asustek on Monday as investor sentiment toward the company was further undermined by a foreign institutional sell-off last week.

According to the TWSE, foreign institutional investors sold a net 17.93 million Acer shares last week, the second largest net sell of any listed company's shares, behind only the net sell of 39.89 million shares of printed circuit board maker Compeq Co.

Source: Focus Taiwan News Channel