Taipei: MSCI Inc., a global index provider, has announced changes in Taiwan's weighting within its major indexes following a regular index review. The company has increased Taiwan's weighting in the MSCI All-Country World Index by 0.02 percentage points to 2.25 percent. However, the weightings in the MSCI Emerging Markets Index and the MSCI All-Country Asia ex-Japan Index remain unchanged at 20.46 percent and 23.15 percent, respectively.

According to Focus Taiwan, these revisions are a part of MSCI's quarterly index reviews, conducted in February, May, August, and November, which guide professional investors in adjusting their portfolios. The new index adjustments will be effective after the market closes on November 24.

China experienced the largest weighting increase of 0.10 percentage points in the MSCI Emerging Markets Index, while Saudi Arabia faced the most significant reduction of 0.07 percentage points. Other emerging markets saw limited changes in their weightings.

In a significant move, MSCI added six Taiwanese stocks to the MSCI Global Standard Indexes, reflecting an increase in their market value driven by a boom in artificial intelligence applications. These stocks include Aspeed Technology Inc., BizLink Holding Inc., Chroma ATE Inc., Gold Circuit Electronics Ltd., King Yuan Electronics Co., and Teco Electric and Machinery Co. Teco's shares, in particular, surged over 120 percent in the past three months due to its partnership with AI server maker Hon Hai Precision Industry Co.

Conversely, the six aforementioned stocks were removed from the Global Small Cap Indexes. Furthermore, MSCI removed seven other stocks from the MSCI Global Standard Indexes, transferring them to the Global Small Cap Indexes. These include Acer Inc., AUO Corp., Micro-Star International Co., Silergy Corp., Synnex Technology International Corp., Voltronics Power Technology Corp., and WPG Holdings Ltd.

Additionally, four new stocks were included in the MSCI Global Small Cap Indexes: Ability Enterprise Co., Dynamic Holding Co., Intelligo Technology Inc., and Longwell Co. Following the review, the number of constituents in the MSCI Taiwan Index decreased from 87 to 86, with Chroma ATE seeing the most significant weighting increase from zero to 0.42 percent. In contrast, Taiwan Semiconductor Manufacturing Co.'s (TSMC) weighting was reduced by 0.51 percentage points, the steepest cut, to 58.03 percent.