MSCI cuts Taiwan’s weighting in three indexes

16-May-2019 Intellasia | Focus Taiwan | 6:00 AM Print This Post

Global index provider MSCI Inc. has decided to lower Taiwan’s weighting in three of its indexes in the latest adjustments announcement overnight after a semi-annual index review.

According to data compiled by Yuanta Securities Investment Trust Co., MSCI has downgraded Taiwan’s weighting in the MSCI Emerging Markets Index by 0.51 percentage points from 11.41 percent to 10.90 percent.

The index is closely watched by foreign institutional investors when shaping strategies for emerging markets.

Meanwhile, the index provider has also cut Taiwan’s weighting in the MSCI All-Country Asia ex-Japan Index from 12.93 percent to 12.56 percent, and in the MSCI All-Country World Index from 1.35 percent to 1.34 percent, according to the data.

The latest index adjustments are scheduled to take effect after the market closes May 28.

The data shows that Taiwan suffered the steepest weighting decline in the MSCI Emerging Markets Index, while Thailand enjoyed the largest weighting increase of 0.44 percentage points.

The adjustments largely reflected the fluctuations of market capitalisation, Yuanta Securities Investment Trust said.

According to the data, no Taiwanese stocks have been added to or deleted from the MSCI Taiwan Index, with the total constituents in the index remaining at 87.

Among the 87 constituents in the MSCI Taiwan Index, the weighting of 19 stocks has been raised, while the weighting of another 13 has been lowered, data compiled by J.P. Morgan Asset Management shows.

The weighting of Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, has been raised by 0.18968 percentage points, the largest increase among the 19 stocks of which weighting has been increased.

CTBC Financial Holding Co. came in second after its weighting was raised by 0.12093 percentage points, ahead of Hotai Motor Co. a sales agent for Japan’s Toyota Motor Corp. (0.06665 percentage points) and DRAM chip maker Nanya Technology Co. (0.05486 percentage points).

On the other hand, iPhone assembler Hon Hai Precision Industry Co. saw its weighting cut by 0.27490 percentage points, the steepest among the 13 stocks, followed by Cathay Financial Holding Co. (0.13348 percentage points), power management solution provider Delta Electronics Inc. (0.09438), Taiwan’s largest steel maker China Steel Corp. (0.09326 percentage points) and contract shoemaker Feng Tay Enterprises Co. (0.04224 percentage points).

No Taiwanese stocks have been added to or removed from the MSCI Global Standard Indexes and the MSCI Micro Cap Indexes, while 10 stocks have been added and an additional five have been deleted from the MSCI Global Small Cap Indexes.

Among the 10 stocks added to the MSCI Global Small Cap Indexes are computer peripheral supplier Asia Vital Components Co., auto parts maker Cayman Engley Industrial Co. and semiconductor maker Egis Technology Inc.


Category: Taiwan

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