Global index provider MSCI Inc has raised Taiwan’s weighting in one of its major indices, but cut the weighting in two others after a regular index review.
MSCI yesterday said in a statement that it has upgraded Taiwan’s weighting in the MSCI All-Country World Index by 0.01 percentage points to 2.41, and downgraded the country’s weighting in the MSCI Emerging Markets Index, the most closely watched by foreign institutional investors, from 21.18 percent to 21.15 percent.
In addition, the index provider cut Taiwan’s weighting in the MSCI All-Country Asia ex-Japan Index by 0.06 percentage points to 24.06 percent, it said.
Photo: Reuters
MSCI index reviews are conducted in February, May, August and November each year. The latest index adjustments are scheduled to become effective after the market closes on Feb. 26.
MSCI said China enjoyed the largest hike of 0.17 percentage points in weighting in the MSCI Emerging Markets Index after the index review, while Saudi Arabia suffered the steepest cut of 0.04 percentage points.
Weighting changes for other emerging markets in the MSCI Emerging Markets Index were limited, MSCI data showed.
MSCI added IC testing equipment supplier Hon Precision Inc (鴻勁精密) to the MSCI Global Standard Indexes, while removing four others — tire maker Cheng Shin Rubber Industry Co (正新橡膠), garment producer Eclat Textile Co (儒鴻), sports footwear provider Feng Tay Enterprises Co (豐泰企業) and curtain maker Nien Made Enterprise Co (億豐工業).
However, Cheng Shin, Eclat Textile, Feng Tay and Nien Made have been included in the MSCI Global Small Cap Indexes, while eight other companies, such as offshore wind engineering service provider Dong Fang Offshore Co (東方風能), IC testing and assembly firm Formosa Advanced Technologies Co (福懋科技), Fulltech Fiber Glass Corp (富喬工業) and Heron Neutron Medical Corp (禾榮科技), were added to the small cap indexes.
MSCI removed 11 stocks from the MSCI Global Small Cap Indexes, including embedded processor intellectual property supplier Andes Technology Corp (晶心科技), power management solution provider Channel Well Technology Co (僑威科技), touch panel maker General Interface Solution Holding Ltd (業成控股) and Great Tree Pharmacy Co (大樹醫藥).
After the regular review, the number of firms in the MSCI Taiwan Index fell from 86 to 83.
Among the 83 constituents, MSCI said Hon Precision Inc received the largest weighting upgrade of 0.39 percentage points, while Eclat Textile’s weighting marked the steepest cut, down by 0.11 percentage points.
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