By: Tien Yu-pin and Frances Huang
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. [FULL STORY]