Foxconn’s shares fell almost 3 percent in Hong Kong to HK$2.60, its lowest level in more than a week and underperformed the broader Hang Seng Index, which was down just 0.2 percent.
The shares of Hon Hai, Foxconn’s parent group, declined about 1 percent in Taipei, also underperforming the broader Taiwan market, which was up slightly.
Lele said Foxconn and iPhone maker Apple have been under pressure to improve working conditions for its employees in China and Foxconn’s shares could trade lower until investors have the full picture behind Sunday night’s incident.
“They (Foxconn and Apple) instituted a lot of audits in the past year to improve working conditions and I think this pressure will continue to grow. Until now, most of the contract manufacturers have been able to get away with its working conditions. Now with more exposure to media, it will be very difficult to maintain their image,” he said.
If there isn’t any damage to the plant’s equipment, Foxconn should be able to get back on track pretty quickly, Lele added.
The Taiyuan plant, which employs about 79,000 workers, makes parts for automotive electronics and assembles various electronic devices, according to Foxconn. A staff member at the Taiyuan plant told Reuters news agency that the plant makes parts and assembles Apple’s iPhone 5.
It was unclear on Monday when the plant, closed for police investigations, would be opened again.
Alberto Moel, senior research analyst with Sanford Bernstein in Hong Kong, said the decline in Foxconn shares could be down to concerns over a disruption in Apple’s supply chain. Apple on Friday started shipping its iPhone 5 and any disruption at Foxconn’s Chinese plants could hurt Apple as well as Foxconn.