MSCI raises Taiwan's weighting in 3 major indexes

Taipei, Feb. 15 (CNA) MSCI Inc., a global index provider, has raised Taiwan's weighting in three major indexes after a quarterly review.

In a statement released earlier this week, MSCI said it had upgraded Taiwan's weighting in the MSCI Emerging Markets Index, which is closely watched by foreign institutional investors, from 20.02 percent to 20.16 percent.

MSCI also hiked Taiwan's weighting in the MSCI All-Country World Index and the MSCI All-Country Asia ex-Japan Index by 0.02 percentage points and 0.13 percentage points, respectively, to 1.96 percent and 22.89 percent.

MSCI index reviews are conducted in February, May, August and November each year, with indexes in U.S. dollar terms provided to professional investors to help guide their portfolio adjustments.

The latest index adjustments are scheduled to take effect after the market closes on Feb. 27.

India enjoyed the largest hike of 0.17 percentage points in the MSCI Emerging Markets Index among the emerging markets, while South Korea suffered the steepest fall of 0.17 percentage points.

Weighting changes of other emerging markets in the MSCI Emerging Markets Index, which is closely watched by foreign institutional investors, were limited.

In addition to the weighting adjustments, MSCI has also decided to add copper-clad (CCL) supplier Elite Material Co. and connector maker Lotes Co. to the MSCI Global Standard Indexes.

The inclusion of the two stocks largely reflected the gains in their share prices in recent sessions, analysts said.

Meanwhile, MSCI has decided to remove dynamic random access memory (DRAM) chip supplier Nanya Technology Corp. and cable and wire maker Walsin Lihwa Corp. from MSCI Global Standard Indexes, while including the two companies in the MSCI Global Small Cap Indexes.

In addition to Nanya Technology and Walsin Lihwa, MSCI has included additional eight Taiwanese stocks to the MSCI Global Small Cap Indexes, including Taiwan's newest international carrier Starlux Airlines, machinery supplier All Ring Tech Co. and Caliway Biopharmaceuticals Co.

MSCI removed 41 Taiwanese stocks from the MSCI Global Small Cap Indexes, including computer peripheral maker AIC Inc., luxury yacht supplier Alexander Marine Co., Chia Hsin Cement Corp., printed circuit board producer Chin Poon Industrial Co., and China Man-Made Fiber Corp.

As for the MSCI Taiwan Index, the number of its constituents stayed unchanged at 88.

Among the 88 stocks, the weighting of Elite Material has been raised to 0.35 percent by 0.35 percentage points, the largest hike, while contract chipmaker TSMC suffered the steepest cut of 0.30 percentage points to 54.57 percent, according to MSIC.