MSCI Inc., a global index provider, has raised Taiwan’s weighting in one of its major indexes but left the country’s weighting in another two unchanged.
In a statement released by the index provider Friday morning Taipei time, MSCI said it had increased Taiwan’s weighting in the MSCI All-Country Asia ex-Japan Index by 0.03 percentage points to 15.79 percent, while maintaining the country’s weighting in the MSCI Emerging Markets Index, as well as in the MSCI All-Country World Index at 13.97 percent and 1.62 percent, respectively, following a quarterly review.
As for the MSCI Emerging Markets Index, which is closely watched by foreign institutional investors, China enjoyed the largest upgrade of 0.09 percentage points in weighting, followed by Thailand (up 0.05 percentage points). India suffered the steepest cut of 0.23 percentage points in weighting ahead of Indonesia (down 0.02 percentage points), according to the index provider.
In the MSCI Taiwan Index, the number of constituents remained at 88.
Among the 21 stocks in the MSCI Taiwan Index that saw their weighting changed in the latest index adjustments, Walsin Lihwa Corp., one of the leading wire and cable makers in Taiwan, secured the largest upgrade of 0.01 percentage points in weighting to hit 0.43 percent, while China Development Financial Holding Co.’s weighting was cut by 0.01 percentage points, the steepest reduction, to 0.69 percent.
Also after the quarterly index adjustments, no Taiwanese stocks were added to or removed from the MSCI Global Standard Indexes.
Before the release of the index adjustments, the market had embraced high hopes that Global Unichip Corp. (GUC), an application-specific integrated circuit (ASIC) design subsidiary of contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), would be included in the MSCI Global Standard Indexes, pushing the stock higher in recent trading sessions.
The announcement sent GUB shares lower by 1.09 percent to close at NT$910.00 (US$30.23) on the Taiwan Stock Exchange Friday, when the Taiex, the weighted index on the main board, ended down only 0.08 percent at 15,586.65.
However, MSCI added 10 Taiwanese stocks to the MSCI Global Small Cap Indexes, while no Taiwanese stocks were removed from the MSCI Global Small Cap Indexes.
Among the 10 stocks are yacht maker Alexander Marine Co., dumpling brand Bafang Yunji International Co., steel supplier Gloria Material Technology Corp., nylon air textured yarn provider Jinan Acetate Chemical Co., and machinery producer Kaori Heat Treatment Co., MSCI said.
The 10 stocks also included IC patent portfolio owner M31 Technology Corp., solar energy developer Shinfox Energy Co., medical equipment supplier Synmosa Biopharma Corp., contact lens brand Visco Vision Inc. and wireless communications device maker Vivotek Inc., MSCI added.
After the announcement, M31 shares soon touched the NT$644.00 mark at one point before selling set in to drag the stock by 4.49 percent to end at NT$595.00 on profit-taking on the over-the-counter market, where the index closed down 0.95 percent at 200.42 Friday.
The latest index adjustments are scheduled to go into effect after the market closes on Feb. 24, MSCI said.
MSCI index reviews are conducted in February, May, August and November each year.
Source: Focus Taiwan News Channel