MSCI Inc., a global index provider, has added PC brand Micro-Star International Co. (????) to the MSCI Global Standard Indexes after its semi-annual index review.
Analysts said the inclusion of Micro-Star to the MSCI Standard Indexes reflected a nearly 38 percent increase in its stock price during the third quarter, which was driven higher by the PC vendor’s strong bottom line.
Micro-Star posted a third quarter net profit of NT$1.62 billion (US$50.78 million), up 74 percent from a quarter earlier and also up 74 percent from a year earlier.
Its earnings per share of NT$1.91 in the third quarter hit a new quarterly high, helped by the company’s efforts to penetrate the gaming PC market, which commands a higher profit margin.
Though Micro-Star was included in the MSCI Global Standard Indexes, it was removed from the MSCI Global Small Cap Indexes, according to the index provider.
Micro-Star’s inclusion in the MSCI Global Standard Indexes did not help the company’s share price, which fell 3.99 percent to close at NT$83.40 on the Taiwan Stock Exchange on Tuesday.
In a statement released overnight, MSCI also said it has removed battery provider Simplo Technology Co. (????) from the MSCI Global Standard Indexes after the stock fell 8.4 percent in the July-September period.
Shares of Simplo, one of Apple Inc.’s suppliers, fell 2.99 percent to end at NT$91.10 on the over-the-counter market Tuesday.
But Simplo was added to the MSCI Global Small Cap Indexes after the index review.
Meanwhile, MSCI added nine other stocks listed in Taiwan to the MSCI Global Small Cap Indexes, including wireless communications device provider Arcadyan Technology Corp. (??), food firm Charoen Pokphand Enterprise (Taiwan) Co. (??), China General Plastics Corp. (??), container shipper Wan Hai Lines Ltd. (??), and automatic semiconductor tester printed circuit board maker Chunghwa Precision Test Tech. Co. (??).
In addition to Micro-Star, MSCI said it has removed 26 other Taiwanese stocks from the MSCI Global Small Cap Indexes after the index review.
Among them were imaging solution provider Altek Corp. (???), PC peripheral device maker BenQ Materials Corp. (???), flexible PCB firm Career Technology (Mfg.) Co. (???), Chia Hsin Cement Corp. (??) and gaming software developer XPEC Entertainment Inc. (????), which is under investigation for fraud after a botched tender offer.
The latest index adjustments are scheduled to take effect after the close of trading on Nov. 30, MSCI said.
Source: Focus Taiwan News Channel