HTC shares ex­tend heavy losses, fall­ing be­low NT$80

The China Post - - LOCAL -

Shares of Tai­wan-based smart­phone ven­dor HTC Corp. took a beat­ing to fall be­low NT$80 ( US$ 2.58) Tues­day morn­ing, ex­tend­ing losses from a ses­sion ear­lier, af­ter the com­pany warned over the week­end that it could in­cur an al­most NT$10 loss per share for the sec­ond quar­ter of this year, deal­ers said.

The cur­rent selling re­flected in­vestors’ lin­ger­ing wor­ries over HTC’s earn­ings out­look at a time when he global smart­phone mar­ket’s growth has showed signs of mod­er­at­ing and es­ca­lat­ing com­pe­ti­tion has placed grave pres­sure on the Tai­wanese firm’s ship­ments, they said.

As of 10:57 a.m., shares of HTC had lost 10 per­cent, the max­i­mum daily de­cline, to NT$75.30 with 7.39 mil­lion shares chang­ing hands. The weighted in­dex on the Tai­wan Stock Ex­change was down 0.85 per­cent at 9,288.36 points.

The stock fell 10 per­cent soon af­ter the lo­cal bourse opened Tues­day af­ter a 10 per­cent fall a ses­sion ear­lier as in­vestors re­mained shocked by the com­pany’s warn­ing of a mas­sive net loss for the April-June pe­riod, Taishin Se­cu­ri­ties In­vest­ment Ad­vi­sory an­a­lyst Tony Huang said.

“To my knowl­edge, there have been or­ders placed by in­vestors to sell about 18 mil­lion HTC shares for now,” Huang said. “The earn­ings warn­ing still served as the cul­prit of the selling and I think the down­turn will con­tinue.”

Be­fore the earn­ings warn­ing, Huang said that many in­vestors had high hopes that HTC would re­main prof­itable in 2015 af­ter it turned a profit in 2014, when its earn­ings per share stood at NT$1.80 com­pared with NT$1.60 in loss per share recorded a year ear­lier.

Not Likely to Profit This Year: An­a­lyst

“But, it turned out that the com­pany will in­cur a net loss of al­most NT$10 in the sec­ond quar­ter. So it is un­likely for the com­pany to re­port a net profit this year, which dis­ap­pointed many in­vestors and prompted them to cut their hold­ings in the stocks start­ing from Mon­day,” Huang said.

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