Bloomberg News

Taiwan’s Stock Movers: Hon Hai Precision, Largan Precision, HTC

April 17, 2012

Shares of the following companies had unusual moves in Taiwan trading. Stock symbols are in parentheses and prices are as of the close in Taipei.

The benchmark Taiex Index fell 1.9 percent to 7,585.87, the biggest decline since March 29.

Apple Inc.-related companies: Largan Precision Co. (3008) (3008 TT), a lens maker, dropped 3.7 percent to NT$549. Hon Hai Precision Industry Co. (2317) (2317 TT), assembler for Apple products, declined 3.9 percent to NT$110. Apple slumped 4.2 percent yesterday amid speculation that demand for the iPad may wane and that mobile-phone carriers will cut subsidies for the iPhone, eroding the profitability of the company’s best-selling products.

Evergreen Marine Corp. (2603) (2603 TT), the listed arm of Taiwan’s biggest container-shipping group, plunged 5.6 percent to NT$16.75 after announcing a preliminary accord to lease 10 mega-vessels. The ships may worsen a capacity glut that has pushed rates to unprofitable levels, said Parker Wu, who oversees the equivalent of $100 million of assets for Agriculture Bank of Taiwan in Taipei.

HTC Corp. (2498) (2498 TT) retreated 6.2 percent to NT$485, the lowest since Jan. 13. Asia’s second-largest smartphone maker named Chang Chia-lin, a former partner at Goldman Sachs Group Inc., as its new chief financial officer and spokesman 10 days after reporting its biggest drop in profit since listing a decade ago. “Investors are concerned about how the appointment may reflect instability of HTC’s management,” said Jeff Pu, who rates the stock add at Fubon Financial Holding Co. in Taipei.

To contact the reporter on this story: Weiyi Lim in Singapore at wlim26@bloomberg.net

To contact the editor responsible for this story: Darren Boey at dboey@bloomberg.net


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