MSCI cuts Taiwan’s weighting in 2 indexes, raises it in another

Taipei, MSCI Inc., a global index provider, has cut Taiwan's weighting in its Emerging Markets Index and the All-Country Asia ex-Japan Index while increasing its weighting in the All-Country World Index after a quarterly index review.

According to data compiled by Yuanta Securities Investment Trust Co., Taiwan's weighting in the MSCI Emerging Markets Index was cut by 0.01 percentage points to 11.47 percent and its weighting in the MSCI All-Country Asia ex-Japan Index was lowered by 0.01 percentage points to 13.30 percent.

But MSCI has raised Taiwan's weighting in the MSCI All-Country World Index by 0.01 percentage points to 1.38 percent, the data showed.

No individual Taiwanese stocks were added to or deleted from the MSCI Taiwan Index after the quarterly review, keeping the number of constituents in the index at 90, but some stocks' relative weightings were adjusted, according to the data.

Random access memory chipmaker Nanya Technology Corp. saw its weighting raised by 0.14266 percentage points, the largest increase among the four Taiwanese stocks that saw their weightings in the Taiwan Index rise, according to J.P. Morgan Asset Management.

The other stocks that got a lift were integrated circuit packaging and testing service provider Advanced Semiconductor Engineering Inc.

(by 0.05535 percentage points), memory chipmaker Winbond Electronics

Corp. (0.00560 percentage points) and IC designer Realtek

Semiconductor Corp. (0.00029 percentage points), J.P. Morgan said.

MSCI lowered the weighting of 12 other Taiwanese stocks in the

Taiwan Index, with leading financial firm Yuanta Financial Holding Co.

seeing its weighting cut the most by 0.00821 percentage points, J.P.

Morgan said.

Others whose weightings were cut (all by less than 0.0055

percentage points) were IC designer MediaTek Inc., Taishin Financial

Holding Co., contract notebook computer Compal Electronics Inc.,

contract electronics maker Pegatron Corp., and PC brand Acer Inc.,

J.P. Morgan added.

Also in that group were contract electronics maker Wistron Corp.,

memory chipmaker Macronix International Co., resistor maker Yageo

Corp., smartphone brand HTC Corp., industrial computer maker Advantech

Co., and TaiMed Biologics Inc.

Meanwhile, MSCI Inc. added Taiwan Semiconductor Manufacturing Co.

(TSMC) and Formosa Petrochemical Corp. to its Global Islamic Indexes,

which are designed to reflect Sharia investment principles while

retaining replicability for international investors.

TSMC is the most heavily weighted stock in the local market, while

Formosa Petrochemical, a private fuel supplier under the Formosa

Plastics Corp. comes in third, according to the Taiwan Stock Exchange.

No Taiwanese stocks, meanwhile, were added to or deleted from the

MSCI Global Standard Indexes and the MSCI Global Small Cap Indexes

after the quarterly index review, MSCI said.

MSCI conducts an index review in February, May, August and

November every year. The latest index adjustments are scheduled to

take effect after the market closes on Feb. 27.

Taiwan's stock market was closed on Tuesday ahead of the upcoming

six-day Lunar New Year holiday, so there was no immediate reaction

from the market to the latest MSCI adjustments.

Trading on the local stock market will resume on Feb. 21.

(By Jeffrey Wu and Frances Huang)

Source: Focus Taiwan