Taiwan's weighting increased on three
CNATAIPEI--MSCI Inc., a global index provider, said Thursday that it has raised Taiwan's weighting slightly in three of its indices after a quarterly review.
August 16, 2013, 12:02 am TWN
The move came as a surprise to many analysts tracking the local market who had previously anticipated that MSCI would lower Taiwan's weighting in reflection of foreign institutional selling in recent sessions.
According to MSCI, Taiwan's weighting in the provider's Emerging Markets Index has been raised by 0.01 percentage points to 11.63 percent, while the country's weighting in the All Country Asia Index (excluding Japan) has been also lifted by 0.02 percentage points to 15.01 percent.
The index provider has also boosted Taiwan's weighting in its All Country World Index by 0.01 percentage points to 1.29 percent.
Although Taiwan's weightings in the three indices have been raised, the weighted index on the Taiwan Stock Exchange closed down 0.8 percent on Thursday at 7,887.26 points, in reflection of a fall on Wall Street overnight.
Many market analysts remained concerned over an early exit by the U.S. Federal Reserve from its massive bond-buying program, while weak sentiment toward global high-tech product demand remained in place.
Following the index review, MSCI has added Eclat Textile Co. to its Taiwan index of the MSCI Global Standard Indices, while deleting Tung Ho Steel Enterprise Corp. from the index.
However, it moved the steel company to the Taiwan index of the MSCI Global Small Cap Indices.
After the latest review, 13 local stocks, including power management system provider Delta Electronics Inc., integrated circuit packaging and testing services provider Advanced Semiconductor Engineering Inc. and SinoPac Financial Holdings Co., saw their weighings increase in the MSCI indices.
However, 14 local stocks, including Taiwan Semiconductor Manufacturing Co., United Microelectronics Corp., touch panel maker TPK Holding Co. and contract notebook computer maker Quanta Computer Inc., witnessed their weightings cut.
The index adjustments are scheduled to take effect after the market closes Aug. 30.
MSCI holds four index reviews each year in February, May, August and November, respectively.