MSCI adds Taiwan High Speed Rail, GlobalWafers to global indexes

Taipei--MSCI Inc., a global index provider, has added Taiwan High Speed Rail Corp. (THSRC, ????) and silicon wafer supplier GlobalWafers Co. (????) to its MSCI Global Standard Indexes after its semi-annual index review.

GlobalWafers was included in the MSCI Global Standard Indexes after being removed from the MSCI Global Small Cap Indexes.

THSRC, which listed on the Taiwan Stock Exchange on Oct. 27, 2016 with an issue price of NT$15.15, had not been listed on any MSCI indexes previously.

Market analysts said the inclusion reflected the gains posted by the two stocks in the first quarter when Taiwan's stock markets benefited from large foreign fund inflows.

In the first quarter, shares of THSRC, Taiwan's only high-speed rail operator, rose about 16 percent on the Taiwan Stock Exchange, while GlobalWafers soared 97.4 percent on the over-the-counter market in the wake of its acquisition of U.S. counterpart SunEdison Semiconductor Ltd.

GlobalWafers became the third largest silicon wafer supplier in the world once the acquisition was completed in December 2016.

From Jan. 1 to May 15, THSRC rose 28.8 percent, and GlobalWafers jumped 108.7 percent.

Despite the MSCI announcement posted on its website overnight, the two stocks moved lower Tuesday in line with the broader market, which stumbled on technical resistance in the bellwether electronics sector after the weighted index breached the 10,000-point mark.

As of 12:38 p.m., THSRC shares had fallen 2.95 percent to NT$23.00 on the TWSE, where the weighted index was down 0.21 percent at 10,015.44, while GlobalWafers was down 2.50 percent at NT$234.00 on the OTC market, where the index was down 0.36 percent at 132.45

After its index review, MSCI also decided to remove Casetek Holdings Ltd. (??), a metal casing maker, from the MSCI Global Standard Indexes but add it to the MSCI Global Small Cap Indexes.

Others added to the MSCI Global Small Cap Indexes were Chung Hung Steel Corp. (??), connector maker Concraft Holding Corp. (??), smartphone camera lens supplier Genius Electronic Optical Co. (???), Run Long Construction Co. (??), and computer component maker Taiwan Union Technology Corp. (??).

Other companies removed from the MSCI Global Small Cap Indexes were printed circuit board maker Boardtek Electronics Corp. (??), crystalline solar wafer maker Green Energy Technology Inc. (??), Oneness Biotech Co. (??) and Taiwan Liposome Co. (???).

The latest index adjustments are scheduled to take effect after the market closes on May 31, MSCI said.

Source: Focus Taiwan News Channel