HTC which is a Taiwanese mobile manufacturing company no longer remains the part of TWSE 50 stock index in Taiwan. However, on the other hand HTC will remain as the part of the Mid-Cap 100 index. But the latter is a smaller one and features just 100 companies in comparison to 50 in the TWSE 50 index.
As we know, the Taiwan giant is facing decline in its sales of high end smartphone such as HTC One M9 which has caused its market cap to tumble. They have seen the shares to drop by two thirds roughly over the past few months. However, the company is expecting some rise in sale with its upcoming high end next generation flagship phone HTC Aero or A9. According to the reports, this phone is expected to get released by 29th September along with the Butterfly 3 model of the company.
Currently, HTC is selling its Shanghai factory to deal with the financial crisis its facing these days and has also cut down 15 per cent of its work force. We know that the manufacturer is also trying to diversify its product portfolio by venturing into the virtual reality with the Vive headset, as well as fitness trackers in partnership with Under Armour.
The removal of HTC from TWSE 50 index might cause its stock price to drop further, because foreign investors are not keen in investing on the stock from the aforementioned main index. Currently, the market capitalization of the manufacturer is lower than that of its cash deposits.