MSCI Inc, a global index provider, said yesterday that it has raised Taiwan’s weighting in its Asia-Pacific index (excluding Japan), while cutting the country’s weighting in its emerging markets index, following a semi-annul index review.
MSCI said Taiwan’s weighting in the MSCI Asia-Pacific Index (excluding Japan) has been raised by 0.019 percentage points to 17.57 percent, but added that its weighting in the MSCI Emerging Markets Index has been cut by 0.044 percentage points to 10.62 percent.
HSBC Securities Taiwan said the adjustments are mild and were widely expected by the market, so are unlikely to have a material impact in the near future.
Yesterday, the TAIEX closed down 0.22 percent at 7,143.84 points, off an early low of 7,066.28.
The weightings of nine local stocks have been raised by MSCI, with bicycle maker Merida Industry Co (美利達) seeing its weighting raised 0.206 percentage points, the largest increase among the nine.
The other eight stocks which enjoyed higher weightings were Oriental Union Chemical Corp (東聯), biotech developer ScinoPharm Taiwan Ltd (神隆), electron beam wafer inspection equipment maker Hermes Microvision Inc (漢微科), financial leasing firm Chailease Holding Co (中租控股), Taiwan Cooperative Financial Holding Co (合庫金控), controller IC provider Phison Electronics Corp (群聯), Highwealth Construction Corp (興富發) and computer component maker Chicony Electronics Co (群光).
However, the weightings of 22 stocks have been cut by MSCI, with solar energy firm Sino-American Silicon Products Inc (中美晶) suffering the deepest cut of 0.138 percentage points.
The 21 others included LED product supplier Everlight Electronics Co (億光), solar energy firm Motech Industries Inc (茂迪), United Microelectronics Corp (聯電), contract notebook computer makers Compal Electronics Inc (仁寶) and Wistron Corp (緯創), integrated circuit designer MStar Semiconductor Inc (晨星), metal casing supplier Catcher Technology Co (可成) and the world’s largest contract electronics maker, Hon Hai Precision Industry Co (鴻海).
MSCI said that it had added five stocks to the Taiwan index of the MSCI Global Standard Indices, while removing another five from the index after the review.
The five stocks added to the Taiwan index are Chailease Holding, Hermes Microvision, Merida Industry, Oriental Union Chemical and ScinoPharm. The five stocks removed are Everlight Electronics, Motech Industries, Sino-American Silicon, DRAM chip maker Inotera Memories Inc (華亞科技) and Nan Ya Printed Circuit Board Corp (南亞電路).
According to MSCI, China’s weighting in the the MSCI Emerging Markets Index and MSCI Asia-Pacific Index (excluding Japan) has been cut by 0.232 percentage points and 0.227 percentage points respectively.
Meanwhile, Foxconn International Holdings Ltd (富士康國際), a cellphone manufacturing subsidiary of Hon Hai Group, has been removed from the Hong Kong index of the MSCI Global Standard Indices.
The MSCI adjustments are scheduled to take effect after the local bourse closes on Nov. 30.