MSCI cuts Taiwan’s weighting in two indexes

11-Nov-2019 Intellasia | FocusTaiwan | 6:02 AM Print This Post

MSCI Inc., a global index provider, has cut Taiwan’s weighting in two of its indexes in its latest adjustments announced overnight after a semi-annual index review.

In the announcement, MSCI said it has lowered Taiwan’s weighting in the MSCI Emerging Markets Index by 0.37 percentage points from 11.83 percent to 11.46 percent.

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

China enjoyed the largest increase of 1.58 percentage points in weighting in the MSCI Emerging Markets Index, while South Korea saw the steepest decline of 0.44 percentage points, according to data released by MSCI.

In addition, the index provider has also cut Taiwan’s weighting in the MSCI All-Country Asia ex-Japan Index by 0.47 percentage points from 13.91 percent to 13.44 percent, the data indicated.

MSCI has lowered Taiwan’s weighting in the two indexes three times in a row after its index adjustments.

However, it has decided to maintain Taiwan’s weighting in the MSCI All-Country World Index at 1.38 percent, according to the data.

The latest index adjustments are scheduled to take effect after the market closes November 26.

According to the data, MSCI has added two Taiwanese stocks and deleted one from the MSCI Taiwan Index, with the total constituents in the index remaining at 88.

After the index review, MSCI added Internet communication equipment supplier Accton Technology Corp. into the MSCI Taiwan Index and its weighting stood at 0.48 percent, up from zero, the largest increase among the 88 constituents in the index.

However, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) suffered the steepest decline in weighting cut in the MSCI Taiwan Index by 0.2 percentage points to 36.15 percent, the data showed.

MSCI has added Accton and electronics component maker Wiwynn Corp. to the MSCI Global Standard Indexes, while removing biotech firm TaiMed Biologics Inc.

In addition, MSCI said that Acction has been removed from the MSCI Global Small Cap Indexes. Another Taiwanese stock, Universal Cement Corp., was also removed from the MSCI Global Small Cap Indexes, the company noted.

MSCI has also added a total of 16 Taiwanese stocks to the MSCI Global Small Cap Indexes after the semi-annual index review.

These include TaiMed, Chia Hsin Cement Corp., Advanced Wireless Semiconductor Co., thermal solution providers AURAS Technology Co. and Chaun-Choung Technology Corp., printed circuit board supplier HannStar Board Corp., fitness equipment brand Johnson Health Tech Co. and integrated circuit designer RichWave Technology Corp.


Category: Taiwan

Print This Post