Shares stage mild rebound; HTC shares plunge under pressure
Shares in Taiwan staged a mild rebound Thursday after a plunge seen a day earlier, with investors relieved to some extent by a slower decline of the Chinese yuan, dealers said.
The bellwether electronics sector bounced back from the previous day’s slump on bargain hunting, while the financial sector remained slow, as many investors still thought the valuation of the sector was relatively high compared with the broader market, the dealers said.
Against the rebound on the index, smartphone vendor HTC Corp. ( ) came under heavy pressure after the company announced a halt to sales of a version of its flagship model in the Netherlands due to reported problems with 4G LTE connectivity, they said.
The weighted index on the Taiwan Stock Exchange closed up 28.36 points, or 0.34 percent, at 8,311.74, after moving between 8,271.69 and 8,348.39 on turnover of NT$ 87.41 billion ( US$ 2.71 billion).
The market opened up 0.19 percent and rose to the day’s high as the yuan climbed out of sell- offs seen in the previous two sessions, but some investors soon shifted to the sell side to take profits, a move that compromised the upturn by end of the session, the dealers said.
“Selling suffered by the yuan in the previous two sessions sent ripples through the global financial markets,” equity analyst Vickie Hsieh said.
“Today, the Chinese currency showed signs of stabilizing, falling at a smaller pace, which led equity investors here to pick up bargains,” she added.
“However, turnover remained thin, indicating that many investors preferred to stay on the sidelines amid fears that volatility will follow as the local main board remained technically fragile and choppy,” Hsieh said. The market fell 1.31 percent Wednesday.
The electronics sub- index closed up 0.98 percent, with flat panel maker Innolux Corp. (
) up 6.34 percent to end at NT$ 10.90 and rival AU Optronics Corp. ( ) up 3.59 percent to close at NT$ 10.10.
Among the Taiwanese suppliers to Apple Inc., Hon Hai Precision Industry Co., an assembler of iPhones and iPads, gained 1.04 percent to end at NT$87.40, smartphone camera lens maker Largan Precision Co. ( ) added 1.68 percent to close at NT$ 3,020.00 and metal casing producer Catcher Technology Co. ( ) rose 2.10 percent to end at NT$ 364.50.
Underperforming the broader market, HTC shed 7.82 percent to close at NT$ 50.70 on the news of the temporary sales suspension in Holland. The com- pany said it has launched an investigation into the reported connectivity problems.
The selling also reflected weak sentiment toward HTC’s outlook after the company gave a forecast last week that it could incur NT$ 5.51- NT$ 5.85 in net loss per share in the third quarter after posting a loss per share of NT$ 9.7 the previous quarter.
In the financial sector, which ended down 0.54 percent, E. Sun Financial Holding Co. (
) fell 1.34 percent to close at NT$ 18.45, and Cathay Financial Holding Co. ( ) dropped NT$ 0.11 percent to end at NT$ 46.50, while Yuanta Financial Holding Co. ( ) closed unchanged at NT$ 13.55.