Back to list

35 Taiwan firms included in Nikkei Asia300 Investable Index

2018/02/03 18:56:15

Taipei, Feb. 3 (CNA) A total of 35 fundamentally sound Taiwanese companies have been included in the Nikkei Asia300 Investable Index, giving foreign investors wider options, according to the Taiwan Stock Exchange (TWSE).

The Nikkei Asia300 Investable Index, unveiled at the end of 2017 and compiled and maintained by Japan's Nikkei Inc., has authorized financial firms to issue mutual funds based on the constituents of the index, and the 35 Taiwanese firms were among the stocks selected for future financial instrument sale, the TWSE said.

Taiwan Semiconductor Manufacturing Co., the world's largest contract chipmaker, is the third most heavily weighted stock on the Nikkei Asia300 Investable Index with a weighting of 4.35 percent, trailing Chinese information technology firm Tencent Holdings Ltd. and South Korean Samsung Electronics Co. TSMC is the most heavily weighted stock in Taiwan.

Hon Hai Precision Industry Co., an assembler of iPhones and second only to TSMC in terms of market value in Taiwan, has also been included in the Nikkei Asia300 Investable Index with 1.54 percent weighting, the ninth highest in the index, the TWSE said.

The 35 Taiwanese firms in the Nikkei Asia300 Investable Index are in sectors that range from semiconductor, computer/computer peripherals, Internet communications and optoelectronics to financial/insurance and petrochemicals, the TWSE said.

They hold a 13.86 percent weighting in the index, which is expected to spur foreign institutional investors' interest in Taiwan's capital market, and signals their recognition in the global market, the TWSE said.

Among other Taiwanese constituents in the index are Formosa Petrochemical Corp., telecom services provider Chunghwa Telecom Co., Cathay Financial Holding Co., Formosa Plastics Co., Nan Ya Plastics Corp., Formosa Chemicals & Fibre Corp., Fubon Financial Holding Co., and smartphone camera lens supplier Largan Precision Co., all in the top-10 in the Taiwan Stock Exchange Capitalization Weighted Stock Index.

The Nikkei Asia300 Investable Index has also selected stocks listed in China, Hong Kong, South Korea, India, Singapore, Malaysia, Thailand, Indonesia and the Philippines, the TWSE said.

The 300 constituents were selected from among top the 150 stocks in terms of market value in 10 markets over the past three years, according to the TWSE.

The companies' growth over the past five years was also taken into account, the TWSE said.

(By Tien Yu-pin and Frances Huang)