Taiwan’s Stock Movers: Hon Hai Precision, Largan Precision, HTC
The benchmark Taiex Index fell 1.9 percent to 7,585.87, the biggest decline since March 29.
Apple Inc.-related companies: Largan Precision Co. (3008) (3008 TT), a lens maker, dropped 3.7 percent to NT$549. Hon Hai Precision Industry Co. (2317) (2317 TT), assembler for Apple products, declined 3.9 percent to NT$110. Apple slumped 4.2 percent yesterday amid speculation that demand for the iPad may wane and that mobile-phone carriers will cut subsidies for the iPhone, eroding the profitability of the company’s best-selling products.
Evergreen Marine Corp. (2603) (2603 TT), the listed arm of Taiwan’s biggest container-shipping group, plunged 5.6 percent to NT$16.75 after announcing a preliminary accord to lease 10 mega-vessels. The ships may worsen a capacity glut that has pushed rates to unprofitable levels, said Parker Wu, who oversees the equivalent of $100 million of assets for Agriculture Bank of Taiwan in Taipei.
HTC Corp. (2498) (2498 TT) retreated 6.2 percent to NT$485, the lowest since Jan. 13. Asia’s second-largest smartphone maker named Chang Chia-lin, a former partner at Goldman Sachs Group Inc., as its new chief financial officer and spokesman 10 days after reporting its biggest drop in profit since listing a decade ago. “Investors are concerned about how the appointment may reflect instability of HTC’s management,” said Jeff Pu, who rates the stock add at Fubon Financial Holding Co. in Taipei.
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