Global index provider MSCI Inc yesterday cut Taiwan’s weighting on two of its indices.
MSCI lowered Taiwan’s weighting in its Emerging Markets Index by 0.37 percentage points from 11.83 percent to 11.46 percent and in its All-Country Asia ex-Japan Index by 0.47 percentage points from 13.91 percent to 13.44 percent.
Foreign institutional investors assign great importance to MSCI adjustments when drawing investment strategies for emerging markets.
China had the largest increase of 1.58 percentage points in the Emerging Markets Index, while South Korea had the steepest decline of 0.44 percentage points, MSCI data showed.
The company has lowered Taiwan’s weighting in the two indices three times in a row.
However, MSCI kept Taiwan’s weighting in its All-Country World Index unchanged at 1.38 percent.
The adjustments are to take effect after markets close on Nov. 26.
MSCI added two Taiwanese stocks and removed one from its Taiwan Index, leaving the number of constituents at 88.
The two new entrants are Internet communications equipment supplier Accton Technology Corp (智邦科技) and electronic components maker Wiwynn Corp (緯穎科技), while Biotech firm TaiMed Biologics Inc (中裕新藥) is to be removed.
Local contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) saw its weighting in the MSCI Taiwan Index drop by 0.2 percentage points to 36.15 percent, the data showed.
MSCI added 16 Taiwanese stocks to its Global Small Cap Indexes after the semi-annual review and removed Universal Cement Corp (環球水泥).
Accton has been removed from the MSCI Global Small Cap Indexes, it said.
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