MSCI raises Taiwan's weighting in 1 index, lowers in 2 others

Taipei, Feb. 11 (CNA) MSCI Inc., a global index provider, has raised Taiwan's weighting in one of its major indexes but cut the weighting in two other indexes after a regular index review.

In a statement released Wednesday (Taipei time), MSCI said it has upgraded Taiwan's weighting in the MSCI All-Country World Index by 0.01 percentage points to 2.41 and downgraded the country's weighting in the MSCI Emerging Markets Index, the most closely watched by foreign institutional investors, from 21.18 percent to 21.15 percent.

In addition, the index provider also cut Taiwan's weighting in the MSCI All-Country Asia ex-Japan Index by 0.06 percentage points to 24.06 percent, MSCI said.

MSCI index reviews are conducted in February, May, August and November each year. The indexes, provided in U.S. dollar terms, help guide professional investors in adjusting their portfolios.

The latest index adjustments are scheduled to become effective after the market closes on Feb. 26.

MSCI said China enjoyed the largest hike of 0.17 percentage points in weighting in the MSCI Emerging Markets Index after the index review, while Saudi Arabia suffered the steepest cut of 0.04 percentage points in the index.

Weighting changes for other emerging markets in the MSCI Emerging Markets Index were limited following the index review, MSCI's data showed.

In addition, MSCI has added IC testing equipment supplier Hon. Precision, Inc. to the MSCI Global Standard Indexes, while removing four others -- tire maker Cheng Shin Rubber Industry Co., garment producer Eclat Textile Co., sports footwear provider Feng Tay Enterprises Co. and curtain maker Nien Made Enterprise Co. -- from the indexes.

However, Cheng Shin, Eclat Textile, Feng Tay and Nien Made have been included in the MSCI Global Small Cap Indexes, while eight other companies such as offshore wind engineering service provider Dong Fang Offshore Co., IC testing and assembly firm Formosa Advanced Technologies Co., Fulltech Fiber Glass Corp., and Heron Neutron Medical Corp., were also added to the small cap indexes.

Meanwhile, MSCI removed 11 stocks from the MSCI Global Small Cap Indexes, including embedded processor intellectual property supplier Andes Technology Corp., power management solution provider Channel Well Technology Co., touch panel maker General Interface Solution (GIS) Holding Ltd. and Great Tree Pharmacy Co.

After the regular review, the number of firms in the MSCI Taiwan Index fell from 86 to 83, MSCI said.

Among the 83 constituents, MSCI said Hon. Precision Inc. received the largest weighting upgrade of 0.39 percentage points to 0.39 percent, while contract chipmaker Eclat Textile's weighting was lowered by 0.11 percentage points, the steepest cut.