Shares of Singapore’s Broadway Industrial Group, which makes hard disk drive components, jumped 13% to a five-month high, after its customer Seagate Technology Plc posted strong earnings and forecasted higher shipments for this quarter, reported Reuter.
By 10:38 a.m., shares of Broadway were 10.5% higher at $0.37 with more than 20.1 million shares changing hands. This was twice its average daily volume over the last five sessions.
By 10:38 a.m., shares of Broadway were 10.5% higher at $0.37 with more than 20.1 million shares changing hands. This was twice its average daily volume over the last five sessions.
Hard disk drive maker Seagate Technology on Wednesday reported second quarter earnings that beat expectations and said it expects shipments to rise nearly a third this quarter, signalling a faster-than-expected recovery from the disruption caused by the Thailand floods. This sent its shares soaring to a four-year high.
Broadway’s rival Armstrong Industrial Corp also rose 5.3% to $0.30.
“Stocks in the hard disk drive sector are rising a lot today, because Seagate’s earnings topped estimates, and because of rising prices of hard disk drives,” said Edison Chen, an analyst at DMG Research.
He added that he expects Broadway and Armstrong to see a turnaround in their earnings this year, as it recovers from the impact of the Thailand floods in 2010.
Both companies said last month they expected to record a net loss for October-December, due to impairment charges as a result of Thailand’s floods.
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