Home » today » Business » Impact of MSCI Quarterly Adjustment on Taiwanese Stocks and U.S. Interest Rates – February 2020 Update

Impact of MSCI Quarterly Adjustment on Taiwanese Stocks and U.S. Interest Rates – February 2020 Update

Investment is valuable! Have you ever seen the Taiwan stock market rise and fall sharply due to major financial events in a hurry in the morning, and regretted why you didn’t know about it earlier? Yahoo Stock Market selects major financial events of the week for investors every week, pre-analyzes the importance of the event, the direction of expected development, and the possible impact. It also introduces new Taiwanese stocks listed on the counter from time to time, leading investors to “Invest before you know it.” ”!

MSCI quarterly adjustment will soon reveal the weight of Taiwanese stocks may be reduced due to geopolitics

The MSCI quarterly adjustment will be announced on February 13 and is expected to take effect on February 29. The investment advisory legal person pointed out that due to the strong performance of the MSCI India Index and the impact of Taiwan’s geopolitical risks, the weight of Taiwanese stocks may be slightly reduced. Wenye (3036), Qihong (3017), and Taiwan Optoelectronics (2383) are likely to be included in the constituent stocks, while Parade-KY (4966) and Baocheng (9904) may be removed due to their decline in market capitalization rankings. risks of.

MSCI’s index covers the world, including countries, regions, markets, industries, etc. Taiwan is currently classified as an emerging market, and the market is paying attention to its weight changes in the MSCI Emerging Markets Index.

Uniform Investment Consulting Research Report AnalysisIt shows that considering the stock market performance of emerging countries in January, Malaysia and Russia performed better, while the MSCI Taiwan Index rose 0.2%. In view of the relatively strong MSCI India Index and the geopolitical risks in Taiwan, it is predicted that this adjustment will bring about a slight reduction in the weight of Taiwanese stocks.

Extended reading》What is MSCI? How will the adjustment affect Taiwan stocks? Why did there be a huge explosion in the late trading?

MSCI’s quarterly adjustment will soon reveal that the weight of Taiwan stocks may be reduced due to geopolitics (Photo source: Getty) (littleclie via Getty Images)

U.S. CPI will announce that the current Fed interest rates are on hold

The U.S. Federal Reserve announced after its meeting on January 31 that it would keep interest rates unchanged at 5.25%-5.50%, in line with market expectations.Investors are watching for any signs of when the rate cuts will begin, with concerns currently rising on Wall Street as to whether they will happen in March or May.spark heated debateas the market continues to remain close to all-time highs.

Goldman Sachs chief economist Jan Hatzius predicted that the Fed is most likely to start cutting interest rates in March, citing Ball’s speech at a press conference on December 13 that the Fed will hope to reduce inflation to 2%. Interest rates were cut “earlier” before. But Wilmer Stith, bond fund manager at Wilmington Trust, said: “Federal Reserve Chairman Powell will try to lower market expectations for the number of interest rate cuts. The Fed will begin preparing for interest rate cuts in March and will actually start cutting interest rates in June.”

Extended Reading》The Federal Reserve is expected to announce interest rate maintenance this week, and the market’s focus will turn to when the rate cut will begin.

At the same time, the United States will announce important announcements on February 13th and 16th.Consumer Price Index (CPI)Producer Price Index (PPI)the announcement coincided with Taiwan’s Spring Festival holiday. Only after relevant data is released can we further infer the direction of the Fed’s future interest rate decisions.

US CPI will announce that the current Fed interest rates are unchanged (Photo source: Getty) (spawns via Getty Images)

Taiwan stocks are about to close, Chuangwei and Jialianyi’s capital increase stocks will be listed on the market

According to the 2024 Taiwan stock market calendar, the last trading day before the Lunar New Year is scheduled for February 5. There will be no trading on the market from February 6 to 7, and only settlement and delivery operations will be carried out. And on February 15th (Thursday), the Year of the Golden Dragon opened a red market.

Extended Reading》[Investment Consultation Room]Do you want to “hold stocks for the Chinese New Year”? 20 years of historical data tells you: What is the “win rate” of holding stocks for the New Year?

Cash capital increase (FPO)It refers to a listed company issuing new shares to raise funds after an IPO, which can be used for factory expansion, acquisitions, capital increases to improve financial health or repay debts, etc. Companies need to publicly offer new shares to general investors, usually setting a subscription price lower than the market price to attract investors. However, if the issuance amount is too large and the discount is excessive, it may dilute the value of the original shareholders and needs to be carefully evaluated.

Chuangwei (6104) issued 400,000 new ordinary shares with restricted employee rights, with a face value of NT$10 per share, totaling NT$4,000,000. The free issuance of new shares with restricted employee rights is planned to be issued without entity on February 5, 2020 (Monday).

Jialianyi (6153) increased capital through cash. The current price per share was increased by 18 yuan, with a total of 40,000 new shares. It received support from major shareholders. The cash capital increase successfully received the full amount, raising a total of 720 million yuan. This new share will be Listed for trading on February 5. Used to repay bank borrowings. Faced with the recession, Jialianyi was affected by the fierce price negotiations of American consumer brands and supplied soft boards for laptops, tablets, mobile phones and other products.

2024-02-04 14:10:20
#Investment #EarlyMSCIs #quarterly #adjustment #reveal #weight #Taiwanese #stocks #lowered #due #geopolitics #U.S #CPI #announce #Feds #interest #rates #remain #unchanged #Taiwanese #stocks #close #listing #capitalincreasing #stocks

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.