New industry index shows Taiwan’s industrial strength: TIP

The newly unveiled TIP TAIEX+ Industry Elite 30 Index (INE 30 Index) contains major local industrial stocks and showcases Taiwan’s strength in industrial development, according to index provider Taiwan Index Plus Corp. (TIP, 台灣指數公司).

The TIP, a wholly owned subsidiary of the Taiwan Stock Exchange (TWSE), introduced the INE 30 Index to local investors last week with the official launch coming at the beginning of this week, tracking the top 30 industrial stocks in the local equity market. The TWSE operates the local main board.

According to the TIP, the top 10 stocks in the new index in terms of weighting include contract chip maker Taiwan Semiconductor Manufacturing Co. (台積電), the most heavily weighted stock in Taiwan, Formosa Plastics Corp. (台塑), integrated circuit designer MediaTek Inc. (聯發科), smartphone camera lens supplier Largan Precision Co. (大立光) and metal casing maker Catcher Technology Co. (可成).

Industrial computer maker Advantech Co. (研華) is also one of the 10 along with Eclat Textile Co. (儒鴻), metal casing supplier Foxconn Technology Co. (鴻準), IC designer Novatek Microelectronics Corp. (聯詠) and Standard Foods Corp. (佳格).

The TIP said that the 30 stocks in the INE 30 Index had an aggregate market capitalization of NT$7.34 trillion (US$228 billion) as of September, with the largest stock having a NT$4.73 trillion market cap and the smallest stock a NT$7.99 billion market cap.

The index provider said that as industrial stocks account for more than 70 percent of the companies listed on the local main board, the sector is best viewed as an anchor for the local capital market.

Before the launch the index provider said that Taiwan had no similar index to track the local industrial sector. As such, the INE 30 Index offers local investors a new place to park their money other than the financial and electronics sectors.

According to the TIP, the 30 industrial stocks in the new index have recorded an aggregate investment return of 155 percent over the past 10 years, surpassing the 97 percent return posted by the benchmark weighted index on the local main board and the 95 percent return of the FTSE TWSE Taiwan 50 Index, which is comprised of the largest 50 cap stocks in Taiwan.

The TIP said the new index should help investors make handsome profits.

Source: Focus Taiwan News Channel

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