Hot stocks: Semiconductor plays punished on earnings disappointment

Lower customer demand, weak semiconductor sales and global industry slowdown cited as reasons for poor showing

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Michelle Zhu

Published Mon, May 13, 2024 · 03:26 PM

Up until late last year, industry watchers had been largely expecting locally listed semiconductor companies to make a recovery in 2024 as the sector was noted to have been showing signs of a recovery. PHOTO: REUTERS

SEMICONDUCTOR stocks were a sea of red on Monday (May 13), after UMS Holdings ’ first-quarter financial update released last week marked the third straight earnings disappointment for the sector this season.

Among the four counters, UMS experienced the steepest intra-session decline in terms of percentage after shedding up to S$0.23 or 17.4 per cent to S$1.09 on a cum-dividend basis as at 2.12pm. The stock had begun trading ex-dividend on May 7.

Last Friday, the semiconductor company posted a 44 per cent fall in Q1 net profit to S$9.8 million.

Hot Stock Semiconductors UMS Integration AEM venture corp frencken