MSCI's increased Taiwan weighting to attract new foreign funds
Taipei, May 30, 2000 (CENS)--Some additional US$11.5 billion foreign equity funds are expected to find their way into Taiwan's stock market after Morgan Stanley Capital International raise the market capitalization of Taiwan Index in its global indexes on Wednesday, analysts said.
MSCI announced on May 17 that the planned increased weighting of Taiwan shares in MSCI Emerging Markets Free (EMF) index series and MSCI All Country (AC) World Free index series, will proceed as scheduled at the end of this month.
As previously announced on Nov. 23, 1999, the market capitalization weight of the Taiwan Index in both MSCI EMF and AC Free Index series will be increased from 50% to 65% of its market capitalization as of the close of trade on May 31, 2000.
After the market capitalization of Taiwan shares are adjusted upward, the weighting of the Taiwan Index in the MSCI EMF index series will be raised to 13.48% from the previous 12.6% and in the MSCI AC World Free index series to 1.47% from 1.16%.
Taiwan Semiconductor Manufacturing Co. will be the most heavily weighed issue in a total of 76 underlying Taiwan stocks that make up the MSCI Taiwan Index, accounting for a 19.60% share.
The other top issues include United Microelectronics Corp. with a 12.58% share, Asustek Computer (3.96%), Hon Hai Precision Industry (3.81%) and Winbond Electronics (3.66%).
The market capitalization of Taiwan shares in MSCI global indexes will be raised to 80% in November this year and to 100% in January 2001.
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Singapore, May 31 (Bloomberg) -- Singapore stocks may rise for the second time in ten days, led by Chartered Semiconductor Manufacturing Ltd. on its inclusion in Morgan Stanley Capital International Inc.'s Singapore Index of stocks today.
Chartered Semiconductor Manufacturing Ltd. and other stocks that will be included into the MSCI Singapore Index may rise as fund managers who use the index to measure performance may buy the shares that are added. |
