MSCI raises Taiwan weighting in one index, but cuts in another (update)

Taipei, Nov. 15 (CNA) MSCI Inc., a global index provider, said Thursday it has raised Taiwan's weighting in its Asia-Pacific index (excluding Japan), while cutting the country's weighting in its emerging markets index, following a semi-annul index review. MSCI said Taiwan's weighting in the MSCI Asia-Pacific Index (excluding Japan) has been raised by 0.019 percentage points to 17.57 percent, but added that its weighing in the MSCI Emerging Markets Index has been cut by 0.044 percentage points to 10.62 percent. HSBC Securities Taiwan said as the adjustments have been mild and widely expected by the market, the changes are unlikely to impose material impact on the market in the near future. The weighted index on the Taiwan Stock Exchange closed down 0.22 percent at 7,143.84 points, off an early low of 7,066.28. The weightings of nine Taiwan stocks have been raised by MSCI, with bicycle maker Merida Industry Co. witnessing its weighting raised 0.206 percentage points, the largest increase among the nine. The other eight stocks which enjoyed higher weightings were Oriental Union Chemical Corp., biotech developer ScinoPharm Taiwan Ltd., electron beam wafer inspection equipment maker Hermes Microvision Inc., financial leasing firm Chailease Holding Co., Taiwan Cooperative Financial Holding Co., controller IC provider Phison Electronics Corp., Highwealth Construction Corp., and computer component maker Chicony Electronics Co. Ltd. However, the weightings of 22 Taiwan stocks have been cut by MSCI, with solar energy firm Sino-American Silicon Products Inc. suffering the deepest cut of 0.138 percentage points. The 21 others included United Microelectronics Corp., contract notebook computer makers Compal Electronics Inc. and Wistron Corp., and integrated circuit designer MStar Semiconductor Inc., metal casing supplier Catcher Technology Co., and the world's largest contract electronics maker Hon Hai Precision Industry Co. According to MSCI, China's weighting in the the MSCI Emerging Markets Index and MSCI Asia-Pacific Index (excluding Japan) has been cut by 0.232 percentage points and 0.227 percentage points, respectively. Meanwhile, Foxconn International Holdings Ltd., a cell phone manufacturing subsidiary of Taiwan-based Hon Hai Group, has been removed from the Hong Kong index of the MSCI Global Standard Indices. The MSCI adjustments are scheduled to take effect after the local bourse closes Nov. 30. (By Lo Hsui-wen, Chiang Ming-yen, Sherman Wu, and Frances Huang)