MSCI adds Taiwanese panel-maker into global standard indexes

2017/08/11 18:49:54 fontsize-small fontsize-default fontsize-big
MSCI adds Taiwanese panel-maker into global standard indexes

Taipei, Aug. 11 (CNA) MSCI Inc., a global index provider, has added Taiwan-listed touch panel maker General Interface Solution (GIS) Holding Ltd. (業成) into the MSCI Global Standard Indexes following a quarterly index review.

A statement posted on MSCI's website said that GIS, a subsidiary of Hon Hai Group (鴻海集團), has been removed from the MSCI Global Small Cap Indexes. GIS is a supplier to Apple Inc.

Market analysts said that the upgrade reflects a strong showing of GIS shares in recent sessions amid optimism toward its shipments in the second half of this year due to a launch of the next-generation iPhones, likely in September.

Since the beginning of May, GIS shares had gained almost 85 percent on the Taiwan Stock Exchange prior to Friday.

After news of the inclusion into the MSCI Global Standard Indexes, the stock soared 6.51 percent Friday to close at NT$311.00, outperforming the weighted index, which ended flat, down 0.17 points.

Analysts said that recent strong buying in GIS shares also reflects a plan by the company to launch production of organic light-emitting diode screen modules in the second half of this year with a full capacity of 600,000 units per month.

MSCI said that it has also raised GIS's weighting in its indexes by 0.29585, the largest upgrade among the eight Taiwanese stocks for which the index provider hiked their weighting.

Among the seven other stocks that saw their weighting upgraded are silicon wafer supplier GlobalWafers Co. (環球晶圓), with a rise of 0.09518, and E. Sun Financial Holding Co. (玉山金), with an increase of 0.01424 percentage points.

On the other hand, MSCI has removed Biotech firm OBI Pharma Inc. (浩鼎) from the MSCI Global Standard Indexes but has added the stock to the MSCI Global Small Cap Indexes.

According to MSCI, OBI's weighting has also been cut by 0.12679 percentage points, the steepest cut among the six Taiwanese stocks that suffered a downgrade in weighting.

Following the quarterly index review, MSCI has also raised Taiwan's weighting in the MSCI Emerging Markets Index -- which is closely watched by foreign investors -- by 0.02 percentage points to 12.09 percent.

The index provider has also upgraded Taiwan's weighting on the MSCI All-Country Asia ex-Japan Index by 0.01 percentage points to 14.01 percent, while leaving Taiwan's weighting in the MSCI All-Country World Index unchanged at 1.39 percent.

MSCI said that the index adjustments are scheduled to go into effect after the local equity market closes on Aug. 31.

(By Jeffrey Wu, Pan Chi-I and Frances Huang)
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