Global index provider MSCI Inc said it has raised Taiwan’s weighting in the MSCI All-Country World Index by 0.01 percentage points to 1.94 percent, but cut the country’s weighting in the MSCI All-Country Asia ex-Japan Index by 0.03 percentage points to 21.25 percent after a regular review.
Meanwhile, the nation’s weighting in the MSCI Emerging Markets Index was left unchanged at 18.70 percent, which is closely watched by foreign institutional investors.
MSCI index reviews are conducted in February, May, August and November every year, with indexes in US dollar terms provided to professional investors to help guide their portfolio adjustments.
Photo: Reuters
The latest index adjustments are scheduled to take effect after the market closes on Nov. 25.
It also added International Games System Co (鈊象電子), a Taiwanese game software developer, and Jentech Precision Industrial Co (健策精密), a Taiwan-based metal stamping services provider, 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.
Before Friday, shares of International Games System had soared more than 39 percent on the over-the-counter market since the beginning of August, while shares of Jentech Precision had also surged about 30.60 percent on Taiwan’s main stock exchange.
MSCI removed DRAM chip supplier Winbond Electronics Corp (華邦電) from the MSCI Global Standard Indexes, but added it to the MSCI Global Small Cap Indexes.
Meanwhile, it also added 10 additional Taiwanese stocks to the MSCI Global Small Cap Indexes, including machinery brand All Ring Tech Co (萬潤科技), high-precision planetary gearbox provider Apex Dynamics Inc (台灣精銳科技), semiconductor material supplier Daxin Materials Corp (達興材料), optical interface developer EZconn Corp (光紅建聖), semiconductor inspection equipment maker Gallant Precision Machining Co (均豪精密) and optoelectronic lead frame producer I-Chiun Precision Industry Co (一詮).
MSCI removed 23 Taiwanese stocks from the MSCI Global Small Cap Indexes, including vaccine brand Adimmune Corp (國光生技), radio frequency front-end devices and module maker Advanced Ceramic X Corp (璟德), drug developer Alar Pharmaceuticals Inc (昱展), Asia Polymer Corp (亞洲聚合), dumpling brand Bafang Yunji International Co (八方雲集), flexible printed circuit board maker Career Technology Manufacturing Co (嘉聯益) and skincare product provider Chlitina Holding Ltd (麗豐).
After the index review, the number of constituents on the MSCI Taiwan Index rose to from 87 to 88, the index provider said.
International Game System saw its weighting in the MSCI Taiwan Index increase by 0.53 percentage points, the largest hike among the index’s 88 constituents, while the weighting of Taiwan Semiconductor Manufacturing Co (台積電) was reduced by 0.39 percentage points, the steepest cut, to 52.48 percent.
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