REUTERS UPDATE 1-MSCI to boost Taiwan weighting in index [DKKYFJS]
(Adds details throughout)
NEW YORK, June 18 (Reuters) - Global stock index compiler
MSCI on Friday said it would raise the weighting of Taiwan
stocks in its widely followed MSCI Emerging Markets Index, a
move that will likely boost Taiwan stocks as money managers
adjust their portfolios to reflect the index.
MSCI, or Morgan Stanley Capital International Inc.,
majority-owned by Wall Street firm Morgan Stanley <MWD.N>, said
it would remove the Limited Investability Factor (LIF) now
applied to the MSCI Taiwan Index, in two stages.
The first stage, which will raise the LIF from 0.55 to 0.75
in November, will lift Taiwan's weighting in the MSCI Emerging
Markets Index to 16.05 percent, raising it to second in the
index only to South Korea. Taiwan's weight in the index is now
12.09 percent.
The second stage will raise the LIF from 0.75 to 1, which
will make Taiwan the heaviest-weighted country in the index,
with a rating of 20.20 percent.
In the MSCI All Country Far East ex-Japan Index, Taiwan's
weight will also rise, from a current 17.18 percent to 21.7
percent after the first stage, making it the second heaviest
weighted country after South Korea, and to 26.85 percent after
the second stage, giving it the heaviest weight of all
countries in the index.
The first phase will take effect as of the stock market
close on Nov. 30, while the second phase will take effect as of
the close on May 31, 2005, MSCI said.
