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