Shares of ASE dive on suspension of license for its Kaohsiung plant
December 11, 2013, 12:30 am TWN
TAIPEI -- Shares of Taiwan-based Advanced Semiconductor Engineering Inc. (ASE) took a beating early yesterday after one of its plants was shut down on environmental concerns, but strong sales numbers helped the stock rebound later in the session, dealers said.
As of 11:39 a.m., shares of ASE had fallen 3.03 percent to NT$28.85 (US$0.97), after plummeting by the maximum 7 percent to NT$27.70 early in the session, with 53.72 million shares changing hands.
The weighted index on the Taiwan Stock Exchange was down 0.02 percent at 8,442.93.
Investors were initially scared off after the Kaohsiung Environmental Protection Bureau (EPB) on Monday ordered one of ASE's plants in the city — the K7 plant — to suspend its operations after finding that the factory was discharging wastewater containing heavy metals into Houjing Creek.
ASE was also fined NT$600,000 for polluting the river.
“The stock encountered a sell-off soon after the local bourse opened on a knee-jerk reaction to the suspension of operations at the Kaohsiung plant,” MasterLink Securities analyst Tom Tang said.
“But it seemed that bargain hunters turned active to pick up ASE shares after the sell-off because of its strong November sales data,” Tang said.
In a statement released Monday, ASE said its November consolidated sales rose 5.8 percent from a month earlier to a record high of NT$21.97 billion.