Global index provider MSCI Inc has cut Taiwan’s weighting on three of its indices following a semi-annual index review, with the new weightings to take effect next week.
MSCI lowered Taiwan’s weighting in the MSCI Emerging Markets Index from 11.73 percent to 11.63 percent. The index is closely watched by foreign institutional investors to map strategies for emerging markets.
MSCI reduced Taiwan’s weighting on the MSCI All-Country Asia ex-Japan Index from 13.58 percent to 13.45 percent and the MSCI All-Country World Index from 1.3 percent to 1.29 percent.
The index adjustments are to take effect after the market closes on Friday next week, MSCI said.
A cut of 0.1 percentage points on the MSCI Emerging Markets Index largely reflected the removal by the index provider of four Taiwanese stocks from the MSCI Global Standard Indexes after the review, Yuanta Securities Investment Trust Co (元大投顧) manager Lin Liang-yi (林良一) said yesterday.
The four Taiwanese stocks to be eliminated are smartphone maker HTC Corp (宏達電), touchpanel maker General Interface Solution Holding Ltd (業成控股), electric motor supplier Teco Electric & Machinery Co (東元電機) and memorychip maker Macronix International Co (旺宏電子), MSCI.
The four stocks were included in the MSCI Global Small Cap Indexes, it said.
Meanwhile, home appliance maker Tatung Co (大同) was added to the MSCI Global Standard Indexes, it added.
MSCI added five other Taiwanese stocks to the MSCI Global Small Cap Indexes: fastener maker Brighton-Best International (Taiwan) Inc (大成國際鋼鐵), Century Iron And Steel Industrial Co (世紀鋼構), Darfon Electronics Corp (達方電子), Shiny Chemical Industrial Co (勝一化工) and biotech firm TaiDoc Technology Corp (泰博科技).
MSCI removed a total of 41 Taiwanese stocks from the MSCI Global Small Cap Indexes after the review, including communications device supplier Adlink Technology Inc (凌華科技), Advanced Wireless Semiconductor Co (宏捷科技), communication device maker Alpha Networks Inc (明泰科技), Asia Polymer Corp (亞聚) and electronics manufacturer Asia Vital Components Co Ltd (奇鋐).
China’s weighting on the MSCI Emerging Markets Index rose 0.43 percentage points, the largest increase among emerging markets, Lin said, adding that the cut to Taiwan’s weighting is the steepest among emerging markets.
Of the 14 Taiwanese stocks that received an increase in weighing on the MSCI Taiwan Index, Tatung enjoyed the highest increase of 0.40418 percentage points, J.P. Morgan Asset Management data showed.
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