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HTC removed from FTSE TWSE Taiwan 50 Index

2015/09/05 19:55:30

Taipei, Sept. 5 (CNA) The Taiwan Stock Exchange (TWSE) has decided to remove smartphone vendor HTC Corp. (宏達電) from the FTSE TWSE Taiwan 50 Index following a quarterly review and HTC's spot will be taken by Eclat Textile Co. (儒鴻), an elastic functional fabric product provider, the TWSE said.

The index adjustments will come into effect on Sept. 21, the exchange added. Market analysts said that the removal of HTC reflected the heavy losses the stock has suffered in recent sessions, amid lingering concerns over the smartphone maker's earnings outlook.

In the first half of this year, HTC incurred NT$9.70 (US$0.30) in losses per share and the company has forecast it will post an additional NT$5.51 to NT$5.85 in net loss per share in the third quarter, amid escalating competition.

HTC shares have fallen 66.50 percent this year, while shares in Eclat have gained 55.1 percent due to strong global demand for functional textile products.

The TWSE launched the Taiwan 50 Index in October 2002 alongside the FTSE, a global index provider.

The index is usually closely followed by foreign institutional investors, as it is made up of the top 50 large cap stocks in Taiwan, accounting for more than 70 percent of the local main board's total capitalization.

After the market closed on Friday, contract chip maker Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) remained the most heavily weighted stock on the Taiwan 50 Index, making up 24.81 percent of the weighting, ahead of contract electronics supplier Hon Hai Precision Industry Co. (鴻海) with 9.16 percent.

Although HTC has been removed from the Taiwan 50 Index, it remains part of the FTSE TWSE Taiwan Mid-Cap 100 Index, the TWSE said.

Touch panel maker General Interface Solution (GIS) Holding Ltd. (業成), Ta Chong Bank (大眾銀), Mercuries Life Insurance Co. (三商人壽), printed circuit board maker Compeq Manufacturing Co. (華通), auto part firm Hota Industrial Manufacturing Co. (和大), shoe accessory firm Taiwan Paiho Ltd. (百和), IC designer Silergy Corp. (矽力) and Namchow Chemical Industrial Co. (南僑) have also been included in the Taiwan Mid-Cap 100 Index.

However, Eclat Textile, paper maker YFY Inc. (永豐餘), Nan Ya Printed Circuit Board Corp. (南電), memory chip maker Macronix International Corp. (旺宏), President Securities Corp. (統一證), Neo Solar Power Corp. (新日光), restaurant chain operator Wowprime Corp. (王品), flat panel maker Hannstar Display Corp. (彩晶) and hard drive disk component supplier Min Aik Technology Co. (銘異) have been removed from the Taiwan Mid-Cap 100 Index.

(By Tien Yu-pin and Frances Huang)
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