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MSCI adds TSMC, Formosa Petrochemical to Global Islamic Indexes

2018/02/13 10:42:41

Taipei, Feb. 13 (CNA) MSCI Inc., a global index provider, has added Taiwan Semiconductor Manufacturing Co. (TSMC) and Formosa Petrochemical Corp. to its Global Islamic Indexes.

MSCI said it decided after a quarterly index review to include the two Taiwanese stocks in the Islamic index series, which is designed to reflect Sharia investment principles while retaining replicability for international investors.

According to the Taiwan Stock Exchange, TSMC, the world's largest contract chipmaker, was the most heavily weighted stock in the local market as of Monday, while Formosa Petrochemical, a private fuel supplier under conglomerate Formosa Plastics Group, came in third.

MSCI said TSMC and Formosa Petrochemical were among the three largest cap stocks added to the MSCI Global Islamic Indexes. The other was U.S.-based dynamic random access memory chip maker Micron Technology Inc.

The constituents of the MSCI Global Islamic Indexes are not allowed to engage in business categories prohibited by the Islamic world, such as alcoholic beverages, tobacco, pork and related foods, entertainment and even weapons production.

No Taiwanese stocks, meanwhile, were added to or deleted from the MSCI Global Standard Indexes and the MSCI Global Small Cap Indexes after the quarterly index review, MSCI said.

MSCI conducts an index review in February, May, August and November every year. The latest index adjustments are scheduled to take effect after the market closes on Feb. 27.

Taiwan's stock market was closed on Tuesday ahead of the upcoming six-day Lunar New Year holiday, so there was no immediate reaction from the market to the latest MSCI adjustments.

Trading on the local stock market will resume on Feb. 21.

(By Jeffrey Wu and Frances Huang)