Taiwan High Speed Rail added to Mid-Cap 100 Index

Taipei--Taiwan High Speed Rail Corp. (THSRC, ????), the sole high speed railway system operator in Taiwan, has been included in the FTSE TWSE Taiwan Mid-Cap 100 Index after a quarterly index review by the Taiwan Stock Exchange (TWSE).

The Mid-Cap 100 Index, jointly compiled by the TWSE and index provider FTSE, comprises 100 constituents after the top 50 stocks in terms of market capitalization on the local market.

The TWSE, which operates the local main board, said the index adjustments will take effect on March 20.

THSRC launched a listing on the main board on Oct. 27, 2016 with an issue price of NT$15.15 (US$0.49).

On Friday, THSRC shares closed up 0.71 percent at NT$21.15, outperforming the broader market, where the weighted index ended down 0.45 percent.

After seven years of construction, the high speed rail became operational on Jan. 5, 2007, shortening the travel time from Taipei in the north of the country to Kaohsiung in the south to about 1.5 hours at its best speed.

In 2015, THSRC began financial restructuring in a bid to become profitable. Due to the financial restructuring, the Ministry of Transportation and Communications (MOTC) agreed to extend the concession period for THSRC from 35 to 70 years, giving the company time to become profitable.

In addition to adding THSRC to the Mid-Cap 100 Index, the quarterly index review also decided to include semiconductor firm Formosa Sumco Technology Corp. (???), Long Chen Paper Co. (??) and China Petrochemical Development Corp. (???), the TWSE said.

However, EnTie Commercial Bank (???), Formosa International Hotels Corp. (??), printed circuit board maker Unimicron Technology Corp. (??) and notebook computer maker Clevo Co. (??) have been removed from the index, the TWSE said.

After the review, the TWSE said, it decided not make any changes on the FTSE TWSE Taiwan 50 Index, which consists of the largest 50 companies in terms of market cap.

Contract chip maker Taiwan Semiconductor Manufacturing Co. (???), contract electronics maker Hon Hai Precision Industry Co. (??), Formosa Petrochemical Corp. (???), Chunghwa Telecom Co. (???) and Cathay Financial Holding Co. (???) were the top 5 constituents in the Taiwan 50 index as of Friday.

Source: Focus Taiwan News Channel