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MSCI raises Taiwan's weighting in 3 indexes

2019/02/12 16:01:56

Taipei, Feb. 12 (CNA) Global index provider MSCI Inc. has decided to raise Taiwan's weighting in three of its indexes after a quarterly index review.

According to data compiled by Yuanta Securities Investment Trust Co., MSCI has hiked Taiwan's weighing in the MSCI Emerging Markets Index by 0.03 percentage points, from 10.99 percent to 11.02 percent.

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

MSCI also boosted Taiwan's weighting in the MSCI All-Country Asia ex-Japan Index from 12.76 percent to 12.78 percent and in the MSCI All-Country World Index from 1.30 percent to 1.31 percent, the data showed.

Yuanta researchers said the hike in Taiwan's weighting in the MSCI Emerging Markets Index largely reflected the increase in the amount of Taiwanese shares circulating in the open market.

China's weighting in the MSCI Emerging Markets Index rose 0.26 percentage points, the biggest increase of any country in the index, while South Korea saw the biggest fall after its weighting was cut 0.12 percentage points in the quarterly review.

The increase in China's weighting came after MSCI added 12 Chinese stocks, including Taiwan-based Hon Hai Precision Industry Co.'s subsidiary Foxconn Industrial Internet Co. Ltd. (FII), to the MSCI Global Standard Indexes, the research team said.

Compared with the changes in the weightings of China and South Korea, other emerging markets, including Taiwan, experienced only minor changes, the researchers said.

Meanwhile, MSCI added Taiwan's Shanghai Commercial & Savings Bank, which launched an initial public offering on the Taiwan Stock Exchange Oct. 19, 2018, to its MSCI Global Standard Indexes after the review.

It also noted it was not adding or removing any Taiwanese stocks to or from the MSCI Small Cap Indexes and the MSCI Micro Cap Indexes.

Data compiled by J.P. Morgan Asset Management showed MSCI raised the weighting of four Taiwanese stocks in the MSCI Taiwan Index, with Shanghai Bank enjoying the highest weighting increase of 0.78314 percentage points.

Memory chip maker Nanya Technology Corp. came in second with an increase of 0.00217 percentage points in weighting, ahead of EVA Airways (0.00098 percentage points) and Evergreen Marine Corp. (0.00087 percentage points), the data showed.

MSCI cut the weighing of 16 Taiwanese stocks in the MSCI Taiwan Index, with contract chipmaker Taiwan Semiconductor Manufacturing Co. suffering the steepest decline of 0.24809 percentage points.

Hon Hai came in second with a cut of 0.04201 percentage points, followed by Formosa Plastics Corp. (0.02071 percentage points), Win Semiconductors Corp. (0.01997 percentage points), and contract chipmaker United Microelectronics Corp. (0.01871 percentage points), the data showed.

(By Jeffrey Wu and Frances Huang)