MSCI cuts Taiwan’s weighting in 3 indexes

Taipei, Global index provider MSCI Inc. has cut Taiwan's weighting on three of its indexes following a semi-annual index review.

According to data compiled by Yuanta Securities Investment Trust Co., MSCI lowered Taiwan's weighing in the MSCI Emerging Markets Index from 11.73 percent to 11.63 percent. The index is closely watched by foreign institutional investors when shaping strategies for emerging markets.

In addition, MSCI reduced Taiwan's weighting on the MSCI All-Country Asia ex-Japan Index from 13.58 percent to 13.45 percent, and the MSCI All-Country World Index from 1.30 percent to 1.29 percent, the data showed.

The index adjustments will take effect after the market closes on Nov. 30, MSCI said.

Lin Liang-yi (???), manager of the Yuanta P-shares MSCI Taiwan ETF Fund, said Wednesday that a cut of 0.1 percentage points on the MSCI Emerging Markets Index largely reflected the removal by the index provider of four Taiwanese stocks from the MSCI Global Standard Indexes after the review.

The four Taiwanese stocks to be eliminated from the MSCI Global Standard Indexes are smartphone brand HTC Corp., touch panel maker General Interface Solution (GIS) Holding Ltd., electric motor supplier Teco Electric & Machinery Co. and memory chip maker Macronix International Co., MSCI said.

The four stocks have been included in the MSCI Global Small Cap Indexes, MSCI added.

Meanwhile, MSCI has added home appliance brand Tatung Co. to the MSCI Global Standard Indexes, according to the index provider.

In addition to HTC, GIS, Teco and Macronix, MSCI has added five other Taiwanese stocks to the MSCI Global Small Cap Indexes -- fastener maker Brighton-Best International (Taiwan) Inc., Century Iron And Steel Industrial Co., Darfon Electronics Corp., Shiny Chemical Industrial Co., and biotech firm Taidoc Technology Corp.

MSCI has removed a total of 41 Taiwanese stocks from the MSCI Global Small Cap Indexes after the index review, including communications device supplier Adlink Technology Inc. Advanced Wireless Semiconductor Co., communication device maker Alpha Networks Inc., Asia Polymer Corp. and 3C product manufacturer Asia Vital Components Co.

Lin said China 's weighting on the MSCI Emerging Markets Index rose 0.43 percentage points, the largest increase among emerging markets in the index.

The cut of Taiwan's weighting is the steepest among the emerging markets in the index, Lin added.

Data compiled by J.P. Morgan Asset Management shows that of the 14 Taiwanese stocks that received an increase in weighing on the MSCI Taiwan Index, Tatung enjoyed the highest increase of 0.40418 percentage points.

The data indicated that Macronix suffered the steepest drop of 0.20199 percentage points among the five Taiwanese stocks that saw their weighing cut on the MSCI Taiwan Index.

Source: Focus Taiwan News Channel