By: Central News Agency
Taipei, July 25 (CNA) A European brokerage on Saturday cut its target price on shares of Taiwan’s two major telecom operators, citing the fact that they are going ex-dividend, which has sent their share prices lower. The brokerage, whose name cannot be reported under Taiwan’s regulations, said in a research note, however, that it was maintaining its “buy” recommendation on shares of Taiwan Mobile Co. and its “neutral” rating on shares of Chunghwa Telecom Co. .
Taiwan Mobile and Chunghwa Telecom are set to issue NT$5.6 (US$0.18) and NT$4.9 in cash dividends, respectively, for 2014. Taiwan Mobile went ex-dividend on June 26, with its reference opening price that day cut by NT$5.6 from the previous closing level to NT$101.90.
Chunghwa Telecom went ex-dividend on July 16, with its reference opening price cut by NT$4.9 from the previous closing level to NT$93.30. On Friday, shares of Taiwan Mobile closed up 1.97 percent at NT$103.50, still shy of the June 25 closing level of NT$107.50. Shares of Chunghwa Telecom ended up 0.10 percent at NT$95.50, below the July 15 closing level of NT$98.20. The brokerage has lowered its target price on Taiwan Mobile shares to NT$115 from NT$120, and cut its target price on Chunghwa Telecom shares to NT$90 from NT$91. [FULL STORY]