Terry Gou’s Election Bid Announcement Fuels Rally In Foxconn Shares

Shares of Foxconn and its Shanghai and Hong Kong-listed units surged on Thursday as investors are encouraged by news that Terry Gou, founder and chairman of Foxconn, announced on Wednesday to run next year’s Taiwan regional leadership election.

The world’s largest contract manufacturer Foxconn, formally known as Hon Hai Precision Industry Co Ltd, spiked by 5.9 percent to 97.20 Taiwan dollars (3.15 U.S. dollars), the highest since October 2018 and closed at 91.60 Taiwan dollars. The stock is up more than 8 percent so far this week.

Handset maker and Foxconn unit FIH Mobile Ltd jumped as much as 58 percent to 2.23 Hong Kong dollars (0.28 U.S. dollar), its highest since February 2018, and was on track for its sixth consecutive session of gain. The stock has soared more than 100 percent so far this week, heading for its best week since its February 2005 listing.

FIH Mobile Limited’s stock ranked as the second-biggest percentage gainer in early trade, tracking a rally in its parent Foxconn. It has outperformed the Hang Seng Commerce & Industry Index sector by 55.2 percentage points in the past month.

Shares in Foxconn Industrial Internet Co Ltd, a Shanghai subsidiary of Foxconn, once soared to the maximum-allowed limit of 10 percent at 19.7 yuan (2.94 U.S. dollars), hitting their highest since June 2018 with the total market value reaching 388 billion yuan and closed at 19.61 yuan Thursday.

Foxconn Industrial has jumped 25 percent this week and nearly 70 percent so far this year, far outpacing the broad market.

The Hong Kong-listed shares of Foxconn Interconnect Technology Ltd, Hon Hai’s electronic and optoelectronic connectors maker unit, rose as much as 14.3 percent to the highest since February 2018. The stock is up 15 percent this week.―CGTN