Standard Index Sees 3 Additions and 4 Deletions to 73 Constituents
MSCI announced the results of its semiannual index review in the early hours of November 12. The Taiwan Standard Index saw 3 additions and 4 deletions, with the total number of constituents falling from 74 to 73. The new additions were Kinsus (3189), Nanya PCB (8046) and TUC (6274), all PCB and IC substrate concept stocks. The deletions were Wan Hai Lines (2615), Lotes (3533), Chailease Holding (5871) and E Ink Holdings (8069). Among them, Lotes, Chailease Holding and E Ink Holdings were transferred to the MSCI Global Small Cap Index Taiwan constituents, while Wan Hai Lines did not appear on the small-cap addition list this time.
Disposition Stocks Had Delayed Formal Promotion
The newly added Kinsus, Nanya PCB and TUC were previously MSCI Global Small Cap Index Taiwan constituents and were simultaneously promoted to the Global Standard Index. The three companies had already been selected for inclusion in the Global Standard Index in August this year, but inclusion was postponed under relevant MSCI rules because they had been placed under trading disposition by the Taiwan Stock Exchange, and they were only formally included in this adjustment. In addition, MSCI noted that Nanya PCB was one of the top 3 largest additions to the Emerging Markets Index by full company market capitalization, and this time it also adjusted the shares outstanding of 24 constituents.
TUC Gains Most in Weight While TSMC Loses Most
In terms of weight changes, TUC recorded the largest weight increase, up 0.37 percentage points to 0.37% after adjustment. TSMC (2330) recorded the largest weight decrease, down 0.25 percentage points to 54.29% after adjustment. MSCI indexes are important tracking benchmarks for international institutional investors and passive funds, and changes in constituents and weights will be a market focus.
Small-Cap Index Adds 18 and Deletes 12, Effective End of November
The MSCI Global Small Cap Index Taiwan constituents saw 18 additions and 12 deletions this time. The addition list includes Chenbro (3693), Yongqing (7711), Browave (3163), Episil (3016), Etron (5351), Huanyu-KY (4991), Holy Stone (3026), Yongzhi Technology (6683), Lianyou Metal-Innovation Board (7610), Century* (5314), Xinchang Electric (6173), Topoint (8021), Beilike (7822), Tenghui Electronics-KY (6672), Wafer Works (6182), as well as Lotes, Chailease Holding and E Ink Holdings transferred from the Standard Index. The deletion list includes China Steel Chemical (1723), Dongfang Wind Energy (7786), Ecove (6803), Huangchang (2543), GFC (4506), Merry Electronics (2439), Quanta Storage (6188), Taiwan Sakura (9911), uPI Semiconductor (6719), as well as Kinsus, Nanya PCB and TUC promoted to the Standard Index. The adjustment is expected to take effect after the close on November 30, with the new constituent list applying from December 1. MSCI conducts regular reviews in February, May, August and November each year, with February and August as quarterly reviews and May and November as semiannual reviews.