Acer plunges on Q3 loss as local market stages a mild technical rebound


CNA

TAIPEI, Taiwan — Shares in Taiwan staged a mild technical rebound Wednesday as buying in the non-high-tech sector offset the impact of the weakness of certain large-cap electronics stocks, dealers said. Among the losing electronics stocks, Acer Inc. (宏碁), one of Taiwan’s leading personal computer vendors, took a beating after the company reported a net loss for the third quarter, the dealers said. The weighted index closed up 19.77 points, or 0.23 percent, at 8,281.97, after moving between 8,232.50 and 8,297.57 on turnover of NT$76.99 billion (US$2.62 billion). The market opened up 0.16 percent and continued moving upward in a tug of war between selling in some electronics heavyweights and buying in the financial sector, to end in positive territory, the dealers said. “Many investors have been upset by poor corporate results. Today’s technical rebound from yesterday’s (1.10 percent) drop failed to encourage investors to chase prices,” Mega International Investment Services Corp. analyst Alex Huang said.

Acer fell 7 percent, the maximum daily decline, to close at NT$16.90, with 14.22 million shares changing hands. The stock opened limit-down and its weakness continued until the end of the session after the PC vendor reported a day earlier NT$4.82 in loss per share for the third quarter. Acer also announced a corporate restructuring in which it will launch a 7-percent cut in its workforce worldwide in the fourth quarter. Led by Acer, Wistron Corp. (緯創), which provides notebook computer ODM services to the PC vendor, fell 1.12 percent to close at NT$26.50. “Fortunately, some other large-cap electronics, like Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) and Hon Hai Precision Industry Co. (鴻海精密) appeared stable, giving support to the entire electronics sector,” Huang said. Fear of Major Wall Street Pullback Held Index Back