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MSCI adds 1 Taiwan stock to global indexes, but removes 9

MSCI adds 1 Taiwan stock to global indexes, but removes 9

MSCI Inc., a global index provider, has added one Taiwanese stock to the MSCI Global Standard Indexes after its semi-annual index review, while removing nine others.

In a statement posted on its website overnight, MSCI said that it has included biotech firm OBI Pharma Inc. into the MSCI Global Standard Indexes after the index review.

The MSCI inclusion boosted shares of OBI substantially as the indexes have been tracked closely by foreign institutional investors.

As of 11:58 a.m., OBI shares had risen 7.39 percent to NT$472.00 (US$14.43), while the weighted index on the Taiwan Stock Exchange had fallen 0.75 percent to 8,364.82 points.

Among the nine Taiwanese stocks which have been deleted from the MSCI Global Standard Indexes are touch panel maker TPK Holding Co., China Motor Corp., engineering company CTCI Corp., LED chip maker Epistar Corp., and printed circuit board supplier Kinsus Interconnect Technology Corp..

The others which have been removed from the global standard indexes are Taiwan Glass Industry Co., and three shipping companies: U-Ming Marine Transport Corp., Wan Hai Lines Ltd. and Yang Ming Marine Transport Corp..

The removals reflected the nine stocks' weak share prices in recent sessions, market analysts said. After the deletions, these stocks generally came under pressure Friday morning, analysts said.

However, TPK, China Motor, CTCI, Epistar Corp., Kinsus, Taiwan Glass, U-Ming Marine Transport and Yang Ming Marine have been added to the MSCI Global Small Cap Indexes, according to the index provider.

In addition to the eight stocks which are newly added to the MSCI Global Small Cap Indexes, the index provider has also included 11 other Taiwanese stocks into the global small cap indexes.

Among the 11 stocks are wireless device maker Advanced Wireless Semiconductor , touch panel supplier General Interface Solution (GIS) Holding Ltd., Lion Travel Service Co. Ltd., biotech firm Pharmally International Holding Co., and electronics component supplier LandMark Optoelectronics Corp..

Meanwhile, MSCI has removed 48 other Taiwanese stocks from the MSCI Global Small Cap Indexes, including packaging tape maker Achem Technology Corp., biotech firm Adimmune Corp., set-top box supplier ALi Corp., and Asia Plastic Recycling Holding Ltd..

The latest index adjustments are scheduled to take effect after the close of trading on Nov. 30.