Global index provider MSCI Inc cut Taiwan’s weighting in two of its major indices, but raised it in a third.
The nation’s weighting in the MSCI Emerging Markets Index, which is closely watched by foreign institutional investors, was lowered by 0.17 percentage points to 14.66, while its weighting in the MSCI All-Country Asia ex-Japan Index was cut by 0.19 percentage points to 16.59 percent, an MSCI statement released yesterday said.
Taiwan’s weighting in the MSCI All-Country World Index was raised to 1.62 percent from 1.61 percent, the statement said.
Photo: Wu Chi-lun, Taipei Times
In the MSCI Emerging Markets Index, China gained the biggest increase of 0.44 percentage points in weighting, ahead of India with a hike of 0.08 percentage points, while Brazil was given the steepest cut of 0.19 percentage points in weighting, followed by Taiwan with its 0.17 percentage points reduction, MSCI said.
Earlier in the day, MSCI said it had added two Taiwanese tech stocks to the MSCI Global Standard Indexes after its latest index review.
One of the stocks was Global Unichip Corp (GUC, 創意電子), an application-specific integrated circuit design company that is a subsidiary of contract chipmaker Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), while the other was contract electronics maker Wistron Corp (緯創), MSCI said.
Winstron and GUC had been removed from the MSCI Global Small Cap Indexes, it said.
With the addition of those two stocks, the number of constituents in the MSCI Taiwan Index rose to 90.
Wistron’s weighting in the MSCI Taiwan Index rose to 0.38 percent, scoring the biggest hike among the index’s constituents, while TSMC’s weighting had the steepest cut of 0.28 percentage points, dropping to 42 percent, MSCI said.
Nine Taiwanese stocks were added to the MSCI Global Small Cap Indexes, including electric machinery supplier Fortune Electric Corp (華城電機), BMW’s Taiwan sales agent Pan German Universal Motors Ltd (汎德永業), power management solutions provider Phihong Technology Co (飛宏科技), Shihlin Electric & Engineering Corp (士林電機) and communication services provider Unizyx Holding Corp (合勤控股).
The other four were electronics component maker Waffer Technology Corp (華孚科技), IC testing interface provider WinWay Technology Co (穎崴科技), restaurant chain owner Wowprime Corp (王品) and Yankey Engineering Co (洋基工程).
In addition to GUC and Wistron, MSCI has also removed office automation device supplier Aurora Corp (震旦行) and food brand Taisun Enterprise Co (泰山企業) from the MSCI Global Small Cap Indexes.
The adjustments are scheduled to take effect after the stock market closes on May 31, MSCI said.
MSCI index reviews are conducted in February, May, August and November each year.
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