Taipei, Global index provider MSCI Inc. has added Taiwan-based passive electronics component maker Walsin Technology Corp. to the MSCI Global Standard Indexes after a semi-annual index review.
In a statement released overnight, MSCI said Walsin Technology has been added to the MSCI Global Standard Indexes while being removed from the MSCI Global Small Cap Indexes after the review.
Analysts said the move, considered to be an upgrade, reflected solid gains posted by the company's share price on gains in passive electronics component prices in the global market.
Since the beginning of this year, shares of Walsin Technology had gained about 170 percent before Tuesday. After the inclusion by MSCI, the stock soared 5.62 percent to NT$300.50 (US$10.10) as of 11:36 a.m. Tuesday.
In other moves, MSCI removed Asia Pacific Telecom Co., a telecom arm of Taiwanese manufacturing giant Hon Hai Precision Industry Co., from the MSCI Global Standard Indexes but included it in the MSCI Global Small Cap Indexes.
The downgrade came because Asia Pacific Telecom's stock price has been in the doldrums and remained below the stock's face value of NT$10, analysts said.
Since the beginning of this year, Asia Pacific Telecom shares had fallen more than 12 percent before Tuesday, but it was up 0.11 percent to NT$8.72 as of 11:36 a.m. Tuesday as the negative move had been widely anticipated.
After the index review, MSCI included another nine stocks to the MSCI Global Small Cap Indexes in addition to Asia Pacific Telecom.
Among them are printed circuit board maker Career Technology (MFG.) Co., LED wire frame packaging material supplier Chang Wah Technology Co., Hsin Kuang Steel Co., semiconductor inspection service provider Machvision Inc., wafer maker Pan Jit International Inc., and chemical product provider Swancor Holding Co.
Others included in the MSCI Global Small Cap Indexes are Tanvex BioPharma Inc., Unitech Printed Circuit Board Corp. and IC designer VIA Technologies Inc., according to MSCI.
In addition to Walsin Technology, MSCI removed another 14 stocks from the MSCI Global Small Cap Indexes, including polarizer and polarizing coiled material maker Chi Mei Materials Technology Corp., fitness equipment provider Johnson Health Tech Co., solar cell maker E-Ton Solar Tech Co., packaging material supplier Green Seal Holding Ltd, and Taiwan Land Development Corp.
The index adjustments are scheduled to take effect after the market closes on May 31, MSCI said.
Source: Focus Taiwan News Channel