Catcher shares rebound on foreign brokers' optimism
June 26, 2014, 12:01 am TWN
TAIPEI--Shares of Catcher Technology Co. (可成) rebounded Wednesday morning after slumping a day earlier on optimistic forecasts by several foreign brokerages of the Taiwanese metal casing maker's prospects, dealers said.
The optimism of foreign institutional investors offset negative sentiment generated by speculation that Catcher had failed to obtain certification from Apple Inc. to produce casings for the next generation of iPhones, they said.
As of 11:13 a.m., shares of Catcher had added 3.05 percent to NT$270 (US$9), with 7.65 million shares changing hands. The weighted index on the Taiwan Stock Exchange was down 0.10 percent at 9,236.73.
“Despite the negative leads from the Apple certification issue, foreign institutional investors' net sell was limited compared with yesterday's turnover,” MasterLink Securities analyst Tom Tang said. Foreign institutional investors sold a net 432,465 Catcher shares on Tuesday, a mere fraction of the stock's total trading volume of 19.80 million shares.
“With many investors calming down a little bit today after continued optimism from foreign brokerages, it was no surprise that Catcher shares staged a technical rebound this morning from yesterday's dive (of 5.76 percent),” Tang said.
Rumors of Apple's Certification
The rumors of Catcher's failure to obtain Apple's certification for new iPhone casing production prompted many investors to dump Catcher shares Tuesday amid fears that Apple would shift its orders to other casing suppliers.