High Speed Rail added to Taiwan 50 Index

Taipei--Taiwan High Speed Rail Corp. (THSRC, ????), the sole high speed rail system operator in the country, has been added to the FTSE TWSE Taiwan 50 Index after a quarterly index review, according to the Taiwan Stock Exchange (TWSE).

The Taiwan 50 Index, which is jointly compiled and managed by TWSE and global index provider FTSE International Ltd., is comprised of the top 50 stocks in the local equity market in terms of market capitalization.

The TWSE said that THSRC has ranked among the top 40 stocks in market cap in the local bourse after a recent showing so FTSE decided to include the stock in the index.

The index adjustments will take effect on June 19.

THSRC, which launched a listing on the local main board Oct. 27, 2016 with an issue price of NT$15, closed at NT$26.45 on Friday, up more than 76 percent from its debut.

During the period of Jan. 1-June 2, THSRC shares gained almost 44 percent, and its uptrend appeared more visible after MSCI Inc. announced in mid-May that it would add the stock to its Global Standard Indexes for the first time.

Due to the significant gains in share price, THSRC's market cap had increase to NT$148.91 billion (US$4.95) as of Friday from NT$84.45 billion seen on its listing day in October.

As of 12:28 p.m. Saturday, THSRC shares had lost 0.38 percent to NT$26.35 on the TWSE, where the weighted index was down 0.02 percent at 10,150.92 points.

The local equity market was the only one open in the world this Saturday, which is treated as a normal work day in Taiwan to make up for a lost trading session during the Dragon Boat Festival holiday in late May.

After adding THSRC, FTSE has decided to remove Eclat Textile Co. (??) from the Taiwan 50 Index and put the textile firm in the waiting list for the index, the TWSE said.

In addition to Eclat, FTSE has also placed financial leasing firm Chailease Holding Co. (??), window curtain supplier Nien Made Enterprise Co. (??), contract notebook computer maker Inventec Corp. (???) and Yulon Nissan Motor Co. (???) on the waiting list.

Instead, the TWSE said that FTSE has decided to add Eclat, Yulon Nissan, memory chip maker Macronix International Co. (??), speaker maker Merry Electronics Co. (??) and smartphone camera lens producer Genius Electronic Optical Co. (???) to the FTSE TWSE Taiwan Mid-Cap 100 Index because of their higher market capitalization.

The Taiwan Mid-Cap 100 Index is comprised of the next biggest 100 companies outside the Taiwan 50 Index in terms of market cap.

Meanwhile, FTSE removed THSRC, Taiwan Spinning Co. (??), Far Eastern Department Stores Ltd. (??), steel maker Yieh Phui Enterprise Co. (??) and packaging material supplier Green Seal Holding Ltd.(??) from the Taiwan Mi-Cap 100 Index, the TWSE said.

Source: Focus Taiwan News Channel