HTC shares bounce back af­ter tak­ing a beat­ing for two con­sec­u­tive days

The China Post - - LOCAL - BY JOHN LIU

Af­ter shed­ding value for two con­sec­u­tive days, shares of smart­phone ven­dor HTC Corp. ( ) rose 1.33 per­cent to NT$76.3 on Wed­nes­day, af­ter heavy trad­ing of more than 50 mil­lion shares.

The price climbed 3 per­cent at its peak to reach NT$77.6 yes­ter­day. Whether the re­bound means there is no more bad news is still un­cer­tain as of now, as for­eign in­sti­tu­tional in­vestors are still bear­ish of HTC’s prospects, said an­a­lysts.

Last Fri­day HTC slashed its sec­ond-quar­ter fore­cast, and warned that it could in­cur a nearly NT$10 loss per share. As share prices plum­meted on both Mon­day and Tues­day, a to­tal of NT$14.5 bil­lion in cap­i­tal­ized value has evap­o­rated.

Sev­eral busi­ness lead­ers have voiced their sup­port for the dis­tressed HTC, in­clud­ing Fubon Fi­nan­cial Hold­ing ( ) Vice Chair­man Richard Tsai ( ) and Catcher Tech­nol­ogy Co. ( ) Chair­man Hung Shui-shu ( ). Tsai praised HTC phones for its many great func­tion­al­i­ties, while Hung said HTC has been treated un­fairly. “What has the gov­ern-

ment done (to help HTC)?” he said.

Tai­wan Should Give More Sup­port

But it was Far Eastern Group (

) Chair­man Dou­glas Hsu ( ) who was the most adamant. Af­ter an in­vestor con­fer­ence held yes­ter­day, Hsu said he felt “sym­pa­thetic” to­ward HTC Chair­woman Cher Wang ( ).

Wang has in­vested a lot of time on the com­pany. It is hard to have an es­tab­lished busi­ness, and it is even harder to make it stay afloat, Hsu said. “I have many cell­phones, in­clud­ing HTC ones. They work well.”

Peo­ple out­side HTC do not know about the com­pany’s sit­u­a­tion, and there­fore can­not com­ment on its rights or wrongs, Hsu said. “Tai­wanese should pro­vide more en­cour­age­ment. There are few Tai­wanese com­pa­nies that have such in­ter­na­tional pres­tige. We should help out HTC more.”

Hsu and Wang have been col­lab­o­rat­ing closely. The two signed a “4G strate­gic part­ner­ship mem­o­ran­dum of un­der­stand­ing” at the be­gin­ning of the year.

Stock Mar­ket to Bounce Back: Hsu

The Far Eastern chair­man also com­mented on the re­cent per­for­mance of the stock mar­ket. For­eign cap­i­tal has wielded much im­pact on Tai­wan’s stock mar­ket, but the lo­cal pop­u­la­tion should have faith in the do­mes­tic econ­omy, so that for­eign­ers can be per­suaded of its po­ten­tial as well.

The mar­ket has seen down­ward ad­just­ment af­ter the gov­ern­ment re­laxed the trad­ing fluc­tu­a­tion cap from 7 to 10 per­cent on June 1. Hsu be­lieves the new rule only has a short-term im­pact, and fore­cast the mar­ket will re­turn to nor­mal once in­vestors get used to the widened trade range. The price-earn­ing ra­tio for lo­cal stocks has gone down lately, mean­ing the stock in­dex has fallen be­yond the rea­son­able range, ac­cord­ing to Hsu.

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