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MSCI slightly cuts Taiwan stock weightings.

Taipei, Aug. 22, 2011 (CENS)--In its recently announced quarterly stock index weighting review, Morgan Stanley Capital International Inc. (MSCI) slightly cut Taiwan stock weighting in its Asia Pacific Index (excluding Japan) by 0.07 of a percentage point to 19.1%.

In the meantime, MSCI also trimmed Taiwan's weighting by 0.04 of a percentage point to 11.24% in its MSCI Emerging Markets Free Index from 11.28%. This is the second time for MSCI to trim Taiwan stock weighting since May this year.

Because of the stock index weighting adjustment in Asia's stock markets, JPMorgan Stanley estimated Taiwan stock market will see a net outflow of US$56 million while China stock market will be able to absorb fresh funds of approximately US$100 million from international institutional investors. This time, MSCI increased China stock index weighting by 0.08 of a percentage point.

It is expected that the slight adjustment of the stock index weighting by MSCI will have little impact on the performance of local bourse. JPMorgan Stanley believes the Euro bond issue will have more decisive impact on the stabilization of the international financial market than the slight adjustment in MSCI index weighting in the months to come.

The MSCI routinely adjusts the stock index weightings four times yearly, namely in February, May, August and November.
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Title Annotation:Morgan Stanley Capital International Inc.
Author:Shen, Ben
Publication:The Taiwan Economic News
Article Type:Brief article
Geographic Code:9TAIW
Date:Aug 22, 2011
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