After its quarterly index review, MSCI Inc has cut Taiwan’s weighting in its Emerging Markets Index and the All-Country Asia ex-Japan Index while increasing its weighting in the All-Country World Index.
According to data compiled by Yuanta Securities Investment Trust Co (元大投信), Taiwan’s weighting in the MSCI Emerging Markets Index was cut by 0.01 percentage points to 11.47 percent and its weighting in the MSCI All-Country Asia ex-Japan Index was lowered by 0.01 percentage points to 13.30 percent.
MSCI raised Taiwan’s weighting in the MSCI All-Country World Index by 0.01 percentage points to 1.38 percent, the data showed.
No individual Taiwanese stocks were added to or deleted from the MSCI Taiwan Index, keeping the number of constituents in the index at 90, but some stocks’ relative weightings were adjusted, the data showed.
Chipmaker Nanya Technology Corp (南亞科) saw its weighting raised by 0.14266 percentage points, the largest among the four stocks that saw their weightings in the index rise, JPMorgan Asset Management said.
The others were integrated circuit packaging and testing service provider Advanced Semiconductor Engineering Inc (ASE, 日月光半導體) (by 0.05535 percentage points), memory-chip maker Winbond Electronics Corp (華邦電子) (0.00560 percentage points) and IC designer Realtek Semiconductor Corp (瑞昱) (0.00029 percentage points), JPMorgan said.
MSCI lowered the weighting of 12 stocks in the index, with Yuanta Financial Holding Co (元大金控) seeing its weighting cut the most at 0.00821 percentage points, JPMorgan said.
Others whose weightings were cut by less than 0.0055 percentage points were IC designer MediaTek Inc (聯發科), Taishin Financial Holding Co (台新金), notebook computer maker Compal Electronics Inc (仁寶), contract electronics maker Pegatron Corp (和碩) and Acer Inc (宏碁), JPMorgan added.
Contract electronics maker Wistron Corp (緯創), memory chipmaker Macronix International Co (旺宏), resistor maker Yageo Corp (國巨), smartphone brand HTC Corp (宏達電), industrial computer maker Advantech Co (研華) and TaiMed Biologics Inc (中裕新藥) also saw there weightings cut by the same amount.
MSCI added Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) and Formosa Petrochemical Corp (台塑石化) to its Global Islamic Indexes, which are designed to reflect Shariah investment principles while retaining replicability for international investors.
No local stocks were added to or deleted from the MSCI Global Standard Indexes and the MSCI Global Small Cap Indexes after the quarterly index review, MSCI said.
MSCI reviews its indices in February, May, August and November every year. The latest adjustments are scheduled to take effect after the market closes on Feb. 27.
Taiwan’s stock market was closed yesterday ahead of the six-day Lunar New Year holiday, so there was no immediate reaction to the latest adjustments. It will reopen on Wednesday next week.
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