MSCI cuts Taiwan's weighting in 2 major indexes, leaves 1 unchanged

Taipei, Aug. 9 (CNA) MSCI Inc., a global index provider, has cut Taiwan's weighting in two major indexes, while leaving another unchanged in its quarterly review.

In a statement Friday Taipei time, MSCI said it had cut Taiwan's weighting in the closely watched MSCI Emerging Markets Index to 19.40 percent from 19.45 percent.

MSCI also cut Taiwan's weighting in the MSCI All-Country Asia ex-Japan Index by 0.08 percentage points to 21.89 percent, but kept its weighting in the MSCI All-Country World Index at 2.05 percent.

MSCI reviews its indexes each February, May, August and November. The indexes, calculated in U.S. dollars, help guide professional investors in adjusting their portfolios.

The changes will take effect after markets close on Aug. 26, MSCI said.

MSCI said India saw the largest weighting cut in the Emerging Markets Index, down 0.07 percentage points, while China had the biggest increase, up 0.15 points.

Weighting changes for other emerging markets in the index were minimal, MSCI said.

MSCI will add aesthetics medicine and inflammatory disease drug developer Caliway Biopharmaceuticals Co. and server rail maker King Slide Works Co. to its Global Standard Indexes, while removing footwear supplier Pou Chen Corp. and property developer Ruentex Development Co.

Market analysts said the changes reflected fluctuations in the affected stocks' share prices.

Meanwhile, MSCI will remove Caliway and King Slide from its Global Small Cap Indexes, while adding Pou Chen and Ruentex. It will also add pneumatic and thermal process solution provider AblePrint Technology Co., printed circuit board maker First Hi-tec Enterprise Co., Fulltech Fiber Glass Corp., water recycling services provider Mega Union Technology Inc. and zipper maker Wiselink Co. into the Global Small Cap Indexes.

In addition to Caliway and King Slide, MSCI said it will remove Chung Hwa Pulp Corp. and Huang Hsiang Construction Corp. from the Global Small Cap Indexes.

After the quarterly review, the MSCI Taiwan Index remained at 87 constituents. King Slide saw the largest weighting increase, up 0.25 percentage points to 0.25 percent, while Pou Chen recorded the biggest drop, down 0.12 points to zero, MSCI said.