Global index provider MSCI Inc yesterday announced it would increase Taiwan’s weighting across three key indices, as local shares perform well, driven by the artificial intelligence (AI), semiconductor and high-tech sectors.
Taiwan’s weighting in the MSCI All Country World Index is to rise by 0.02 percentage points, while it is increase by 0.14 percentage points and 0.13 percentage points in the MSCI Emerging Markets Index and the MSCI AC Asia ex Japan Index respectively, it said.
Following the adjustments, which are to take effect after the end of trading on Feb. 27, Taiwan’s weightings in the indices would rise to 1.96 percent, 20.16 percent and 22.89 percent respectively, it said.
Photo: CNA
The quarterly adjustments reflect price changes in component stocks and do not necessarily suggest capital movements in the market, the Taiwan Stock Exchange said in a statement.
However, the indices serve as market performance monitors, offering insights into Taiwan’s economic and industrial trends, it said.
The heavily tracked indices would also tweak the MSCI Taiwan components.
It would add printed circuit board supplier Elite Material Co (台光電) and Lotes Co Ltd (嘉澤), which makes connectors and other electronic components.
It would remove DRAM chipmaker Nanya Technology Corp (南亞科技) and Walsin Lihwa Corp (華新麗華), a maker of cold finished bars, it said.
Stocks added to MSCI indices would undergo a short-term price surge due to increased buying pressure from index-tracking funds. Stocks removed might experience selling pressure as funds adjust their portfolios. The total number of MSCI Taiwan stocks remains unchanged at 88.
MSCI also said it would trim the weighting of Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) by 0.3 percentage points to 54.57 percent, as share prices in the world’s chipmaker soared more than 80 percent last year.
Likewise, the weighting of chip designer MediaTek Inc (聯發科) would slide after a 52 percent spike in the share prices last year.
Fubon Securities Investment Services Co (富邦投顧) chairman Edward Chen (陳奕光) said the adjustment would have little influence on TSMC as the chipmaker remains Taiwan’s largest MSCI component and has firm support of major passive mutual funds, including Taiwan’s labor insurance and pension funds.
Cathay Futures Consultant Co (國泰證期) analyst Tsai Ming-han (蔡明翰) said the MSCI adjustments would benefit the local exchange when global investors cut exposure to riskier markets and seek stable and high-tech-focused economies.
With AI demand rising, more institutional investors would want exposure to Taiwan’s leading chipmakers, Tsai said.
In contrast to the increase of Taiwanese equities’ weighting by MSCI, the index compiler further trimmed Chinese stocks from its global benchmarks, underscoring the market’s diminishing appeal among investors despite a recent rebound.
MSCI said it would cut 20 stocks from the MSCI China Index, following more than 200 removals last year, while eight new constituents would be added.
The changes would also apply to the MSCI All Country World Index, it said.
Among other notable changes, MSCI removed 11 stocks from the MSCI Korea Index, while adding none. It culled nine from Japan and added one.
Additional reporting by Bloomberg
The Eurovision Song Contest has seen a surge in punter interest at the bookmakers, becoming a major betting event, experts said ahead of last night’s giant glamfest in Basel. “Eurovision has quietly become one of the biggest betting events of the year,” said Tomi Huttunen, senior manager of the Online Computer Finland (OCS) betting and casino platform. Betting sites have long been used to gauge which way voters might be leaning ahead of the world’s biggest televised live music event. However, bookmakers highlight a huge increase in engagement in recent years — and this year in particular. “We’ve already passed 2023’s total activity and
Nvidia Corp CEO Jensen Huang (黃仁勳) today announced that his company has selected "Beitou Shilin" in Taipei for its new Taiwan office, called Nvidia Constellation, putting an end to months of speculation. Industry sources have said that the tech giant has been eyeing the Beitou Shilin Science Park as the site of its new overseas headquarters, and speculated that the new headquarters would be built on two plots of land designated as "T17" and "T18," which span 3.89 hectares in the park. "I think it's time for us to reveal one of the largest products we've ever built," Huang said near the
BIG BUCKS: Chairman Wei is expected to receive NT$34.12 million on a proposed NT$5 cash dividend plan, while the National Development Fund would get NT$8.27 billion Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, yesterday announced that its board of directors approved US$15.25 billion in capital appropriations for long-term expansion to meet growing demand. The funds are to be used for installing advanced technology and packaging capacity, expanding mature and specialty technology, and constructing fabs with facility systems, TSMC said in a statement. The board also approved a proposal to distribute a NT$5 cash dividend per share, based on first-quarter earnings per share of NT$13.94, it said. That surpasses the NT$4.50 dividend for the fourth quarter of last year. TSMC has said that while it is eager
China yesterday announced anti-dumping duties as high as 74.9 percent on imports of polyoxymethylene (POM) copolymers, a type of engineering plastic, from Taiwan, the US, the EU and Japan. The Chinese Ministry of Commerce’s findings conclude a probe launched in May last year, shortly after the US sharply increased tariffs on Chinese electric vehicles, computer chips and other imports. POM copolymers can partially replace metals such as copper and zinc, and have various applications, including in auto parts, electronics and medical equipment, the Chinese ministry has said. In January, it said initial investigations had determined that dumping was taking place, and implemented preliminary
RSS