Global index provider MSCI Inc has lowered Taiwan’s weighting in two of its major indices, but upgraded it in another index after a semi-annual index review earlier this month.
MSCI said in a statement on Friday that it has cut Taiwan’s weighting in the MSCI Emerging Markets Index, which is closely watched by foreign institutional investors, by 0.08 percentage points to 14.12 percent.
It was the 11th consecutive quarter in which MSCI cut the nation’s weighting in the index.
MSCI also lowered Taiwan’s weighting in the MSCI All-Country Asia ex-Japan Index from 16.31 percent to 16.16 percent, while raising its weighting in the MSCI All-Country World from 1.68 percent to 1.69 percent.
The adjustments are to take effect after the market close on Nov. 30.
Following the index review, MSCI said it has decided to move intellectual property portfolio owner eMemory Technology Inc (力旺電子), high-speed transmission integrated circuit designer Parade Technologies Ltd (譜瑞科技) and uninterruptible power system solution provider Voltronic Power Technology Corp (旭隼科技) to the MSCI Global Standard Indexes, from the MSCI Global Small Cap Indexes.
Analysts said the inclusion of the firms in the global standard indices reflects their strong showing on the local equity market this year.
EMemory and Parade shares have risen about 81 percent and 14 percent respectively on the local over-the-counter market since the beginning of August.
Voltronic shares have risen 28.7 percent on the local main board during the period.
NAND flash controller designer Phison Electronics Corp (群聯電子), IC packaging and testing services provider Powertech Technology Inc (力成科技), and capacitor and resister supplier Walsin Technology Corp (華新科技) have been moved from the MSCI Global Standard Indexes to the MSCI Global Small Cap Indexes.
MSCI has also added seven other Taiwanese firms, including e-commerce solution provider 91APP Inc and automotive diode supplier Actron Technology Corp (朋程科技), to the Global Small Cap Indexes.
The number of constituencies in the MSCI Taiwan Index remained unchanged at 87, with 18 stocks having their weighting adjusted by the index provider.
EMemory had the largest weighting upgrade with 0.44 percentage points, while contract chipmaker Taiwan Semiconductor Manufacturing Co (台積電) saw its weighting fall to 45.01 percent, MSCI said.
MSCI said that India witnessed the largest weighting upgrade in the MSCI Emerging Markets Index with 0.16 percentage points.
UNPRECEDENTED PACE: Micron Technology has announced plans to expand manufacturing capabilities with the acquisition of a new chip plant in Miaoli Micron Technology Inc unveiled a newly acquired chip plant in Miaoli County yesterday, as the company expands capacity to meet growing demand for advanced DRAM chips, including high-bandwidth memory chips amid the artificial intelligence boom. The plant in Miaoli County’s Tongluo Township (銅鑼), which Micron acquired from Powerchip Semiconductor Manufacturing Corp (力積電) for US$1.8 billion, is expected to make a sizeable capacity contribution to the company from fiscal 2028, the company said in a statement. It would be an extended production site of Micron’s large-scale manufacturing hub in Taichung, the company said. As the global semiconductor industry is racing to reach US$1 trillion
Singapore-based ride-hailing and delivery giant Grab Holdings Ltd has applied for regulatory approval to acquire the Taiwan operations of Germany-based Delivery Hero SE's Foodpanda in a deal valued at about US$600 million. Grab submitted the filing to the Fair Trade Commission on Friday last week, with the transaction subject to regulatory review and approval, the company said in a statement yesterday. Its independent governance structure would help foster a healthy and competitive market in Taiwan if the deal is approved, Grab said. Grab, which is listed on the NASDAQ, said in the filing that US-based Uber Technologies Inc holds about 13 percent of
Taiwan’s food delivery market could undergo a major shift if Singapore-based Grab Holdings Ltd completes its planned acquisition of Delivery Hero SE’s Foodpanda business in Taiwan, industry experts said. Grab on Monday last week announced it would acquire Foodpanda’s Taiwan operations for US$600 million. The deal is expected to be finalized in the second half of this year, with Grab aiming to complete user migration to its platform by the first half of next year. A duopoly between Uber Eats and Foodpanda dominates Taiwan’s delivery market, a structure that has remained intact since the Fair Trade Commission (FTC) blocked Uber Technologies Inc’s
Memory chip stocks extended their losses yesterday after Alphabet Inc’s Google publicized research that could allow more efficient use of the storage needed for artificial intelligence (AI) development. SK Hynix Inc and Samsung Electronics Co, South Korean leaders in the market, fell more than 6 percent and about 5 percent respectively in Seoul. In the US, Micron Technology Inc, Western Digital Corp and Sandisk Corp slid more than 2 percent in pre-market trading, after they all closed lower on Wednesday. Memory companies have been on a tear in recent months as the rapid development of AI infrastructure triggered a spike in chip
RSS