Shares stage mild re­bound; HTC shares plunge un­der pres­sure

The China Post - - TAIWAN BUSINESS -

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.

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