MSCI Inc, a global index provider, has raised Taiwan’s weighting in one of its major indices and left the country’s weighting unchanged in two other indices after a regular index review.
In a statement released on Thursday, MSCI said it has upgraded Taiwan’s weighting in the MSCI All-Country World Index by 0.02 percentage points to 2.25 percent, while maintaining the weighting in the MSCI Emerging Markets Index, the most closely watched by foreign institutional investors, at 20.46 percent.
Additionally, the index provider has left Taiwan’s weighting in the MSCI All-Country Asia ex-Japan Index unchanged at 23.15 percent.
Photo: Reuters
The latest index adjustments are to take effect after the market closes on Nov. 24.
MSCI added six Taiwanese stocks to the MSCI Global Standard Indexes: baseboard management controller chip designer Aspeed Technology Inc (信驊), automotive solution provider BizLink Holding Inc (貿聯), IC testing services supplier Chroma ATE Inc (致茂電子), printed circuit board (PCB) maker Gold Circuit Electronics Ltd (金像電子), IC testing firm King Yuan Electronics Co (京元電) and electric motor producer Teco Electric & Machinery Co (東元電機).
The inclusion largely reflected an increase in share prices of the six stocks to boost their market value in recent months, riding the waves of a boom of artificial intelligence applications, market analysts said.
All six have been moved up and out from the Global Small Cap Indexes, according to MSCI.
MSCI has removed seven stocks from the MSCI Global Standard Indexes, moving them to the MSCI Global Small Cap Indexes. They are PC vendor Acer Inc (宏碁), flat panel maker AUO Corp (友達), gaming PC brand Micro-Star International Co (微星), power management solution provider Silergy Corp (矽力), electronic components distributor Synnex Technology International Corp (聯強), uninterruptible power system maker Voltronics Power Technology Corp (旭隼) and semiconductor component distributor WPG Holdings Ltd (大聯大).
Alongside the seven stocks, four others — optical equipment maker Ability Enterprise Co (佳能), PCB maker Dynamic Holding Co (定穎), voice user interface developer Intelligo Technology Inc (意騰) and electronics component maker Longwell Co (良維) — have also been included in the MSCI Global Small Cap Indexes.
After the quarterly review, the number of companies on the MSCI Taiwan Index fell to 86 from 87, MSCI said.
Among those 86 companies, MSCI said Chroma ATE saw the largest weighting upgrade from zero to 0.42 percent as it was added to the MSCI Global Standard Index for the first time, while contract chipmaker Taiwan Semiconductor Manufacturing Co’s (台積電) weighting was lowered by 0.51 percentage points to 58.03 percent, the steepest cut.
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