HTC is no longer part of the TWSE 50 stock index in Taiwan. Going forward, the troubled Taiwanese manufacturer will be part of the Mid-Cap 100 Index. The latter is smaller and features 100 companies, compared to 50 in the TWSE 50 index.
A decline in the sales of high-end smartphones, including HTC One M9 has caused the manufacturer’s market cap to tumble. HTC has seen its shares drop by roughly two thirds over the past several months.
In order to deal with its financial woes, HTC has opted to sell its Shanghai factory, as well as cut 15% of its workforce worldwide. The company is also trying to diversify its product portfolio by venturing into virtual reality with the Vive headset, as well as fitness trackers in partnership with Under Armour.
The removal from the TWSE 50 index might cause the HTC stock price to drop further, because foreign investors are not keen on investing in stocks out of the aforementioned main index. Currently, HTC’s market capitalization is lower than its cash deposits.