MSCI adds Accton, Wiwynn to Global Standard Indexes

2019/11/08 12:56:43 fontsize-small fontsize-default fontsize-big
MSCI adds Accton, Wiwynn to Global Standard Indexes

Taipei, Nov. 8 (CNA) MSCI Inc., a global index provider, has added two Taiwanese stocks to its MSCI Global Standard Indexes after a semi-annual index review, with the adjustments scheduled to take effect on Nov. 27.

In an announcement posted on its website overnight, MSCI said it will include Taiwan-based internet communication equipment supplier Accton Technology Corp. and electronics component maker Wiwynn Corp. on the MSCI Global Standard Indexes.

The inclusion was based on gains made by the two companies in terms of share price in recent trading sessions that saw their market capitalization increase, market analysts said.

Analysts said the adjustments are expected to better reflect the reality of the local equity market.

From Aug. 1 to Nov. 7, Acction shares increased in price by almost 30 percent, while those in Wiwynn, a subsidiary of contract electronics maker Wistron Corp. soared more than 30 percent.

As of 11:13 a.m., Acction shares had added 0.57 percent at NT$175.00 (US$5.75), off an early high of NT$181.00, and Wiwynn shares had gained 3.61 percent to reach NT$517.00 on the Taiwan Stock Exchange, where the benchmark weighted index was down 0.16 percent at 11,588.12 points.

On the other hand, MSCI removed biotech firm TaiMed Biologics Inc. from the MSCI Global Standard Indexes. From Aug. 1-Nov. 6, TaiMed shares lost more than 18 percent on the local over-the-counter (OTC) market.

As of 11:13 a.m., shares in TaiMed had fallen 1.48 percent to NT$133.50 on the OTC market, where the index was down 0.11 percent at 144.44 points.

However, MSCI said Acction has been removed from the MSCI Global Small Cap Indexes. Another Taiwanese stock, Universal Cement Corp., was also removed from the MSCI Global Small Cap Indexes, the company noted.

MSCI has added a total of 16 Taiwanese stocks to the MSCI Global Small Cap Indexes after the semi-annual index review. These include TaiMed, Chia Hsin Cement Corp., Advanced Wireless Semiconductor Co., thermal solution providers AURAS Technology Co. and Chaun-Choung Technology Corp., printed circuit board supplier HannStar Board Corp. fitness equipment brand Johnson Health Tech Co. and integrated circuit designer RichWave Technology Corp., according to MSCI.

MSCI reviews and adjust its indexes four times a year: in February, May, August and November. Those indexes are closely followed by foreign institutional investors when mapping out investment strategies.

(By Jeffrey Wu and Frances Huang)
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