A man walks past an establishment with an HTC logo. (Photo : Reuters)
Taiwan's leading smartphone maker HTC Corp. was delisted from the FTSE TWSE Taiwan 50 Index after a quarterly analysis, leaving the vacant spot to Eclat Textile Co., a supplier of elastic functional fabric product, the Taiwan Stock Exchange (TWSE) said, reflecting the massive decline in HTC's revenues.
The index adjustment will be implemented on Sept. 21, according to the exchange. Moreover, the removal reinforced the huge losses in HTC shares in recent sessions that can be traced back on lingering issues regarding the company's earnings.
HTC suffered NT$9.70 ($0.30) in losses per share during the first half of this year, and the firm stated that it predicts an additional NT$5.51 to NT$5.85 ($0.168-$0.179) in net loss per share in the third quarter, as competition among smartphone vendors intensify.
HTC shares have dropped 66.50 percent this year, while Eclat shares have increased 55.1 percent as a result of a growing demand in functional textile goods.
The TWSE started the Taiwan 50 Index listing the top 50 high cap stocks in Taiwan, which covers over 70 percent of the local main board's overall capitalization. The index was established in Oct. 2002 alongside the global index provider FTSE.
When the stock market closed on Friday, contract chip manufacturer Taiwan Semiconductor Manufacturing Co. (TSMC) was still the Taiwan 50 Index's most heavily weighted stock. It comprised 24.81 percent of the weighting, which is 9.16 percent higher than contract electronics vendor Hon Hai Precision Industry Co. (Foxconn).
Even though HTC was delisted from the Taiwan 50 Index, the firm remains listed in the FTSE TWSE Taiwan Mid-Cap 100 Index, the TWSE stated.
Other corporations have also been listed in the Taiwan Mid-Cap 100 Index, such as the touch panel supplier General Interface Solution (GIS) Holding, Ta Chong Bank, PCB maker Compeq Manufacturing Co., Mercuries Life Insurance Co., car part supplier Hota Industrial Manufacturing Co., shoe accessory maker Taiwan Paiho, Silergy Corp., and Namchow Chemical Industrial Co.
On the other hand, companies including Eclat Textile, paper supplier YFY, Nan Ya PCB Corp., memory chip manufacturer Macronix International Corp., Neo Solar Power Corp., restaurant chain administrator Wowprime Corp., President Securities Corp., flat panel vendor Hannstar Display Corp., and HDD component maker Min Aik Technology, have been pulled off from the Taiwan Mid-cap 100 Index.
