Yulon Nissan Motor Co (裕隆日產) and footwear supplier Pou Chen Corp (寶成工業) have joined the FTSE TWSE Taiwan 50 Index after a quarterly index review by the Taiwan Stock Exchange Corp (TWSE 台灣證券交易所)and FTSE Group, the TWSE said Saturday.
Market analysts said the inclusion reflected the significant gains the two stocks posted in recent sessions amid optimism toward their profitability.
Since the beginning of October, Yulon Nissan Motor shares have risen 20.3 percent to close at NT$403.50 on Friday as investors praised its close business ties with the car sector in China.
During the same period, shares of Pou Chen, which makes shoes for international brands such as Nike, Adidas and Puma, gained 17.71 percent to close at NT$40.55 percent on Friday.
In addition to stable sales from shoe production, Pou Chen has benefited from its investments in the insurance business, analysts said.
While adding these two new stocks, the TWSE and FTSE also removed touchpanel maker TPK Holding Co (宸鴻) and Taiwan Fertilizer Co (台肥) from the Taiwan 50 Index due to their falling stock prices.
Shares of TPK have fallen almost 38 percent since the beginning of October to close at NT$167 on Friday amid lingering concerns over fierce price competition in the global touchpanel market.
The TWSE and the FTSE launched the Taiwan 50 index in October 2002.
The index, which has been followed closely by institutional investors as they seek to map out their investment strategies, includes the top 50 local stocks in terms of their market capitalization, such as Taiwan Semiconductor Manufacturing Co (台積電) and United Microelectronics Corp (聯電).
Despite their removal from the index, TPK and Taiwan Fertilizer have been added into the FTSE TWSE Taiwan Mid-Cap 100 Index, the exchange said.
The TWSE and FTSE have also decided to add memory chip maker Inotera Memories Inc (華亞科技), server supplier King Slide Works Co (川湖科技) and voice coil motor maker Min Aik Technology Co (銘異科技).
The adjustments to the indeces are scheduled to come into effect on Monday next week, the TWSE said.