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HTC shares stage strong rebound in heavy trading

HTC shares stage strong rebound in heavy trading

Taipei, Oct. 24 (CNA) Shares of Taiwan-based smartphone vendor HTC Corp. staged a strong rebound in heavy trading Thursday as bargain hunters rushed to buy into the stock, taking advantage of its relatively low valuation, dealers said. HTC shares rose 7 percent, the maximum daily increase, to close at NT$145.50 (US$4.95) with 29.91 million shares changing hands, while the weighted index on the Taiwan Stock Exchange ended up 0.23 percent at 8,413.72 points. In the early session, buying in the stock was sparked by media reports that China Mobile, the largest telecom operator in China, was planning to take a stake in HTC and inject funds into the Taiwanese company, the dealers said. Later in the session, however, HTC issued a statement denying the report, but buying interest remained strong and maintained its momentum until the end of the session. Right before the end of the session, investors placed buying orders on about 13 million HTC shares. Market analysts said that after recent consolidation, HTC shares appeared attractive to many bargain hunters, and the speculation on a stake acquisition by China Mobile further prompted investors to buy. Due to the latest buying, the stock overcame stiff technical resistance ahead of the 60-day moving average of around NT$141.50, which could pave the way for a further uptrend in the near future, analysts said. Before the latest rebound, HTC shares had fallen more than 55 percent so far this year. The stock is down to about 10 percent of its historical high of NT$1,300 seen in April 2011. In addition to the buyout speculation, local media said that HTC will launch a new model tailored for China Mobile subscribers in November and that the Chinese telecom operator will offer subsidies for the new device. This, however, was also denied by the smartphone vendor. Analysts said many investors expect HTC to reach a turning point now that Peter Chou, the company's chief executive officer, has transferred some of his management duties, including marketing and supplier relations, to HTC Chairwoman Cher Wang, while he will focus on product innovation. They said that as Chou specializes in research and development, the market has high hopes that the change will help HTC move in the right direction and that its operations will improve accordingly. Earlier this month, HTC reported a net loss of NT$2.97 billion, or NT$3.58 per share, for the third quarter, the company's first quarterly loss since listing on the main board in March 2002. The smartphone supplier has scheduled an investor conference for Nov. 5 to release more details about the third-quarter results and give its fourth-quarter guidance. (By Esme Jiang and Frances Huang)


Updated : 2021-07-31 18:30 GMT+08:00