MSCI raises Taiwan's weighting in 3 indexes

Taipei, May 13 (CNA) Global index provider MSCI Inc. has raised Taiwan's weighting in its three major indexes after a regular index review.

In a statement released early Wednesday morning (Taipei time), MSCI said it has upgraded Taiwan's weighting in the MSCI Emerging Markets Index, the most closely watched by foreign institutional investors, by 0.30 percentage points to 23.76 percent.

The index provider has also raised Taiwan's weighting in the MSCI All-Country World Index and the MSCI All-Country Asia ex-Japan Index by 0.01 percentage points and 0.37 percentage points, respectively, to 2.80 percent and 27.16 percent.

Analysts said the weighting upgrades in the three MSCI indexes reflected the recent strong showing of Taiwan's stock market, which has been buoyed by the current global AI boom.

Before Wednesday, the Taiex, the Taiwan Stock Exchange's benchmark index, had soared over 44 percent since the beginning of this year.

In the MSCI Emerging Markets Index, Taiwan received the largest weighting hike of 0.30 percentage points, while Indonesia saw the steepest weighting fall of 0.23 percentage points, the index provider said.

Also after the index review, MSCI has added semiconductor test and measurement solution provider MPI Corp. into the MSCI Global Standard Indexes, while removing the company from the MSCI Global Small Cap Indexes.

Meanwhile, the index provider has removed seven Taiwanese stocks from the MSCI Global Standard Indexes but added them to the MSCI Global Small Cap Indexes.

They are Asia Cement Corp., casing maker Catcher Technology Co., China Airlines, contract notebook computer maker Compal Electronics Inc., textile supplier Far Eastern New Century Corp., Taiwan High Speed Rail Corp. and Teco Electric & Machinery Co.

In addition to the seven stocks, MSCI added eight new stocks to the MSCI Global Small Cap Indexes, such as semiconductor equipment supplier Gallant Micro Machining Co. and touch panel maker General Interface Solution (GIS) Holding Ltd.

In addition to MPI Corp., the index provider has removed an additional 11 stocks from the MSCI Global Small Cap Indexes, including biotech firm EirGenix Inc. and footwear supplier Fulgent Sun International (Holding) Co.

In the MSCI Taiwan Index, the number of the constituents fell to 77 from 83 after the index review, MSCI said

Among the constituents, contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC), shares of which had surged over 45 percent since the beginning of this year before Wednesday, enjoyed the highest weighting hike of 0.30 percentage points to 58.33 percent.

Compal suffered the steepest weighting cut of 0.15 percentage points to zero, 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 will take effect after the market closes on May 29, according to MSCI.