Taipei, MSCI Inc., a global index provider, has lowered Taiwan’s weighting in its three major indexes after its latest index review.
In a statement released overnight, MSCI said it has cut Taiwan’s weighting in the MSCI Emerging Markets Index by 0.33 percentage points to 12.3 percent, from 12.63 percent previously.
The index is closely watched by foreign institutional investors when shaping their strategies for emerging markets.
China received the biggest weighting increase in the MSCI Emerging Markets Index review at 1.02 percentage points, while South Korea suffered the steepest cut at 0.35 percentage points, according to the index provider.
MSCI also cut Taiwan’s weighting in the MSCI All-Country Asia ex-Japan Index by 0.31 percentage points to 13.52 percent, and lowered the country’s weighting in the MSCI All-Country World Index by 0.01 percentage points to 1.5 percent.
It was the fifth review in a row in which MSCI cut Taiwan’s weighting in the MSCI Emerging Markets Index and the MSCI All-Country Asia ex-Japan Index.
Taiwan’s weighting in the previous review of the MSCI All-Country World Index in February was left unchanged.
The latest adjustment will take effect after markets close on May 29, according to the statement.
Meanwhile, MSCI added Silergy Corp., a Taiwan-based mixed-signal and analog integrated circuit designer, to the MSCI Global Standard Index while removing it from the MSCI Global Small Cap Index.
At the same time, textile maker Ruentex Industries Ltd. was removed from the MSCI Global Standard Index but added to the MSCI Global Small Cap Index.
Following the announcement, shares of Silergy gained 1.92 percent to close at NT$1,325.00 (US$44.31) on the Taiwan Stock Exchange and Ruentex shares rose 0.15 percent to end at NT$17.00.
In addition to Ruentex, MSCI added 12 other Taiwanese stocks to the MSCI Global Small Cap Index, including Internet of Thing solution provider Adlink Technology Inc., application specific IC designer Alchip Technologies Ltd., computer component maker Asrock Inc., epitaxial wafer provider Episil-Precision Inc., and printed circuit board maker Gold Circuit Electronics Ltd.
MSCI removed two other stocks from the global small cap index — auto parts maker Cayman Engley Industrial Co. and screw and bolt supplier QST International Corp.
Source: Focus Taiwan News Channel