Taipei:MSCI Inc., a global index provider, has increased Taiwan's weighting in three of its major indexes following a routine index review.
According to Focus Taiwan, MSCI has upgraded Taiwan's weighting in the MSCI Emerging Markets Index from 28.86 percent to 29.01 percent. Additionally, Taiwan's weighting in the MSCI All-Country World Index has been raised from 3.25 percent to 3.28 percent, and its weighting in the MSCI All-Country Asia ex-Japan Index has increased from 32.72 percent to 32.83 percent.
This marks the third consecutive quarter that MSCI has raised Taiwan's weighting simultaneously in these three indexes. Analysts have attributed this upgrade to the strong performance of Taiwan's tech-heavy stock market, driven by the ongoing global AI era. The Taiex, Taiwan's benchmark index, had surged over 50 percent since the beginning of the year prior to the announcement.
In contrast, the MSCI Emerging Markets Index saw India's weighting increase by 0.17 percentage points, while China's weighting was reduced by 0.13 percentage points. The MSCI Global Standard Indexes have included three Taiwanese stocks Kinsus Interconnect Technology Corp., Nan Ya Printed Circuit Board Corp., and Taiwan Union Technology Corp., which were previously removed from the MSCI Global Small Cap Indexes.
The inclusion of these companies in the MSCI Global Standard Indexes was initially planned for August but postponed to November due to their high share prices leading to trading restrictions on the Taiwan Stock Exchange. Meanwhile, some companies, including Chailease Holding Co., E Ink Holdings Inc., and Lotes Co., were removed from the MSCI Global Standard Indexes but added to the MSCI Global Small Cap Indexes.
Additionally, 15 Taiwanese stocks were added to the MSCI Global Small Cap Indexes, while nine were removed. Taiwan Union Technology saw the largest weighting increase in the MSCI Taiwan Index, while Taiwan Semiconductor Manufacturing Co.'s weighting was reduced by 0.25 percentage points.
The MSCI index reviews, conducted four times a year, guide professional investors in portfolio adjustments, with the latest changes set to take effect after markets close on November 30.
