Global index provider MSCI Inc yesterday said it has raised Taiwan’s weighting slightly in three of its indices after a quarterly review.
The move came as a surprise to many analysts tracking the local bourse who had expected MSCI to lower Taiwan’s weighting following recent selling by foreign institutional investors.
Taiwan’s weighting in MSCI’s Emerging Markets Index has been raised by 0.01 percentage points to 11.63 percent, while the country’s weighting in the All Country Asia Index (excluding Japan) has been lifted by 0.02 percentage points to 15.01 percent, MSCI said.
The index provider has also boosted Taiwan’s weighting in its All Country World Index by 0.01 percentage points to 1.29 percent.
Despite the increased weightings, the TAIEX closed down 0.8 percent yesterday to 7,887.26 points, mirroring the fall on Wall Street overnight.
Many market analysts remained concerned over an early exit by the US Federal Reserve from its massive bond-buying program and weak global demand for technology products.
Following the index review, MSCI has added Eclat Textile Co (儒鴻) to its MSCI Global Standard Indices’ Taiwan index, while removing Tung Ho Steel Enterprise Corp (東鋼).
However, it moved the steel company to the Taiwan index of the MSCI Global Small Cap Indices.
After the latest review, 13 local stocks, including power management system provider Delta Electronics Inc (台達電), chip packaging and testing services provider Advanced Semiconductor Engineering Inc (日月光) and SinoPac Financial Holdings Co (永豐金控), saw their weightings increase in the MSCI indices.
However, 14 local stocks, including Taiwan Semiconductor Manufacturing Co (台積電), United Microelectronics Corp (聯電), touch panel maker TPK Holding Co (宸鴻) and contract notebook computer maker Quanta Computer Inc (廣達) saw their weightings cut.
The index adjustments are scheduled to take effect after the market closes on Aug. 30.
MSCI holds four index reviews each year — in February, May, August and November.
Nvidia Corp’s demand for advanced packaging from Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) remains strong though the kind of technology it needs is changing, Nvidia CEO Jensen Huang (黃仁勳) said yesterday, after he was asked whether the company was cutting orders. Nvidia’s most advanced artificial intelligence (AI) chip, Blackwell, consists of multiple chips glued together using a complex chip-on-wafer-on-substrate (CoWoS) advanced packaging technology offered by TSMC, Nvidia’s main contract chipmaker. “As we move into Blackwell, we will use largely CoWoS-L. Of course, we’re still manufacturing Hopper, and Hopper will use CowoS-S. We will also transition the CoWoS-S capacity to CoWos-L,” Huang said
Nvidia Corp CEO Jensen Huang (黃仁勳) is expected to miss the inauguration of US president-elect Donald Trump on Monday, bucking a trend among high-profile US technology leaders. Huang is visiting East Asia this week, as he typically does around the time of the Lunar New Year, a person familiar with the situation said. He has never previously attended a US presidential inauguration, said the person, who asked not to be identified, because the plans have not been announced. That makes Nvidia an exception among the most valuable technology companies, most of which are sending cofounders or CEOs to the event. That includes
INDUSTRY LEADER: TSMC aims to continue outperforming the industry’s growth and makes 2025 another strong growth year, chairman and CEO C.C. Wei says Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), a major chip supplier to Nvidia Corp and Apple Inc, yesterday said it aims to grow revenue by about 25 percent this year, driven by robust demand for artificial intelligence (AI) chips. That means TSMC would continue to outpace the foundry industry’s 10 percent annual growth this year based on the chipmaker’s estimate. The chipmaker expects revenue from AI-related chips to double this year, extending a three-fold increase last year. The growth would quicken over the next five years at a compound annual growth rate of 45 percent, fueled by strong demand for the high-performance computing
TARIFF TRADE-OFF: Machinery exports to China dropped after Beijing ended its tariff reductions in June, while potential new tariffs fueled ‘front-loaded’ orders to the US The nation’s machinery exports to the US amounted to US$7.19 billion last year, surpassing the US$6.86 billion to China to become the largest export destination for the local machinery industry, the Taiwan Association of Machinery Industry (TAMI, 台灣機械公會) said in a report on Jan. 10. It came as some manufacturers brought forward or “front-loaded” US-bound shipments as required by customers ahead of potential tariffs imposed by the new US administration, the association said. During his campaign, US president-elect Donald Trump threatened tariffs of as high as 60 percent on Chinese goods and 10 percent to 20 percent on imports from other countries.
RSS